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Blossom Company must decide whether to make or buy some of its components. The costs of producing 60,000 switches for its generators are as follows.

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Blossom Company must decide whether to make or buy some of its components. The costs of producing 60,000 switches for its generators are as follows. Direct materials $29,000 Direct labor $25,000 Variable overhead $44,000 Fixed overhead $76,000 Instead of making the switches at an average cost of $2.90 ($174,000 = 60,000), the company has an opportunity to buy the switches at $2.65 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials $ $ Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost $ Blossom Company will incur $ of additional costs if it buys the switches. Would your answer be different if the released productive capacity will generate additional income of $45,500? (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Make Net Income Increase (Decrease) Buy Total Cost Opportunity cost Total cost $ the answer is The analysis shows that net income will be by s Click if you would like to Show Work for this question: Open Show Work

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