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Blue Spruce Company must decide whether to make or buy some of its components. The costs of producing 60,800 switches for its generators are as
Blue Spruce Company must decide whether to make or buy some of its components. The costs of producing 60,800 switches for its generators are as follows. Instead of making the switches at an average cost of $2.81($170,84860,800), the company has an opportunity to buy the switches at $2.61 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated. (a) Prepare an incremental analysis showing whether the company should make or buy the switches. (Round per unit answers to 2 decimal places, eg. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number eg. 15,000 or parenthesis, e.g. (15,000).) The company should the components. eTextbook and Media Attempts: 0 of 3 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above
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