Current Attempt in Progress

Wilma Company must decide whether to make or buy some of its components. The costs of producing $60,000$ switches for its

generators are as follows.

Instead of making the switches at an average cost of $$2\mathrm{.}95($$$177,00060,000),$ the company has an opportunity to buy the

switches at $$2\mathrm{.}70$ 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$.,(45)).)$

Wilma Company will incur $

of additional costs if it

the switches.

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