Crane Company must decide whether to make or buy some of its components. The costs of producing 62,500 switches for its generators are as follows. Direct materials $30,700 Variable overhead $45,800 Direct labor $21,150 Fixed overhead $83,600 Instead of making the switches at an average cost of $2.90 ($181,250 = 62,500), the company has an opportunity to buy the switches at $2.72 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ 30700 i $ 0 $ 30700 Direct labor 21150 i 0 21150 Variable manufacturing costs 45800 i 0 45800 Fixed manufacturing costs 83600 i 62700 i 20900 Purchase price i 170000 i - 170000 Total cost $ 181250 i $ 232700 $ -51450 Crane Company will incur $ 51450 of additional costs if it buys the switches. Would your answer be different if the released productive capacity will generate additional income of $55,470? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Total Cost $ $ Opportunity cost Total cost $ ta $ Yes the answer is different v. The analysis shows that net income will be increased v by $