Blossom Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows.

Direct materials		$29,800		Variable overhead		$45,400
Direct labor		$29,940		Fixed overhead		$76,400

Instead of making the switches at an average cost of $2.90 ($181,540 62,600), the company can buy the buttons at $2.74 per unit. If the company purchases the buttons, all the variable costs and one-fourth of the fixed costs will be eliminated.

Would your answer be different if the released productive capacity generated an additional income of $51,384? (Enter harmful amounts using either a negative sign preceding the number, e.g., -45 or parentheses, e.g. (45).)

		Make		Buy		Net Income Increase (Decrease)
Total Cost		$enter a total cost in dollar		$enter a total cost in dollar		$enter a total cost in dollar
Opportunity cost		Enter a dollar amount.		Enter a dollar amount		Enter a dollar amount
Total cost		$enter a total amount		$enter a total amount		$enter a total amount

Select an option YesNo; the answer is to select an opportunity the same differently. The analysis shows that net income will choose an option decreased increased by $enter a dollar amount.