Concord 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		$30,200		Variable overhead		$44,800
Direct labor		$31,844		Fixed overhead		$77,200

Instead of making the switches at an average cost of $2.94 ($184,044 62,600), the company has an opportunity to buy the switches at $2.73 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.

(a) Prepare an incremental analysis showing whether the company should make or buy the switches. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)