Cullumber Company must decide whether to make or buy some of its components. The costs of producing 65,900 switches for its generators are as follows. Direct materials $31,000 Variable overhead $44,800 Direct labor $37,028 Fixed overhead $79,600 Instead of making the switches at an average cost of $2.92 ($192,428 + 65,900), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Your answer has been saved. See score details after the due date. 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 Make Buy Increase (Decrease) Direct materials 31000 24 $ 31000 Direct labor 37028 37028 Variable manufacturing 44800 44800 costs Fixed manufacturing costs 79600 59700 19900 Purchase price 181225 181225 Total cost 24 192428 24 181225 %24 48497 Cullumber Company will incur$ 48497 of additional costs if it buys the switches. (b) Would your answer be different if the released productive capacity will generate additional income of $52,747? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Total Cost 24 24 Opportunity cost Total cost 24 24 2$ the answer is +. The analysis shows that net income will be * by $ %24 Cullumber Company must decide whether to make or buy some of its components. The costs of producing 65,900 switches for its generators are as follows. Direct materials $31,000 Variable overhead $44,800 Direct labor $37,028 Fixed overhead $79,600 Instead of making the switches at an average cost of $2.92 ($192,428 + 65,900), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Your answer has been saved. See score details after the due date. 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 Make Buy Increase (Decrease) Direct materials 31000 24 $ 31000 Direct labor 37028 37028 Variable manufacturing 44800 44800 costs Fixed manufacturing costs 79600 59700 19900 Purchase price 181225 181225 Total cost 24 192428 24 181225 %24 48497 Cullumber Company will incur$ 48497 of additional costs if it buys the switches. (b) Would your answer be different if the released productive capacity will generate additional income of $52,747? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Total Cost 24 24 Opportunity cost Total cost 24 24 2$ the answer is +. The analysis shows that net income will be * by $ %24 Cullumber Company must decide whether to make or buy some of its components. The costs of producing 65,900 switches for its generators are as follows. Direct materials $31,000 Variable overhead $44,800 Direct labor $37,028 Fixed overhead $79,600 Instead of making the switches at an average cost of $2.92 ($192,428 + 65,900), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Your answer has been saved. See score details after the due date. 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 Make Buy Increase (Decrease) Direct materials 31000 24 $ 31000 Direct labor 37028 37028 Variable manufacturing 44800 44800 costs Fixed manufacturing costs 79600 59700 19900 Purchase price 181225 181225 Total cost 24 192428 24 181225 %24 48497 Cullumber Company will incur$ 48497 of additional costs if it buys the switches. (b) Would your answer be different if the released productive capacity will generate additional income of $52,747? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Total Cost 24 24 Opportunity cost Total cost 24 24 2$ the answer is +. The analysis shows that net income will be * by $ %24 Cullumber Company must decide whether to make or buy some of its components. The costs of producing 65,900 switches for its generators are as follows. Direct materials $31,000 Variable overhead $44,800 Direct labor $37,028 Fixed overhead $79,600 Instead of making the switches at an average cost of $2.92 ($192,428 + 65,900), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Your answer has been saved. See score details after the due date. 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 Make Buy Increase (Decrease) Direct materials 31000 24 $ 31000 Direct labor 37028 37028 Variable manufacturing 44800 44800 costs Fixed manufacturing costs 79600 59700 19900 Purchase price 181225 181225 Total cost 24 192428 24 181225 %24 48497 Cullumber Company will incur$ 48497 of additional costs if it buys the switches. (b) Would your answer be different if the released productive capacity will generate additional income of $52,747? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Total Cost 24 24 Opportunity cost Total cost 24 24 2$ the answer is +. The analysis shows that net income will be * by $ %24