Brief Exercise 7-2 (Algorithmic) Make-or-Buy. Decision Switzer Corporation makes motorcycle engines. The company's records show the following unit costs to manufacture part #61645: Direct materials Direct labor Variable overhead Fixed overhead Another manufacturer has offered to supply Switzer Corporation with part #61645 for a cost of $58 per unit. Switzer uses 900 units annually. Required: If Switzer accepts the offer, what will be the short-run impact on income? Increaseby $5400 $14 15 23