Cullumber 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. (a) 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 $ Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost $ $ Cullumber Company will incur $ of additional costs if V he switches. makes buys Save for Later Attempts: 0 of 1 used Submit