Bramble Company must decide whether to make or buy some of its components. The costs of producing 67,300 switches for its generators are as follows. Direct materials $30,500 Variable overhead $44,100 Direct labor $41,662 Fixed overhead $81,600 Instead of making the switches at an average cost of $2.94 ($197,862 67,300), the company has an opportunity to buy the switches at $2.69 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.