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Do It! Review 21-3 (Part Level Submission) Wilma Company must decide whether to make or buy some of its components. The costs of producing 67,200
Do It! Review 21-3 (Part Level Submission) Wilma Company must decide whether to make or buy some of its components. The costs of producing 67,200 switches for its generators are as follows. PRINTER VERSION BACK NEXT 212 221-3 21-4 21-5 e 212 e 21-8 W 21-2 W 21-3 Direct materials Direct labor $31,000 Variable overhead $44,484 $44,900 Fixed overhead Instead of making the switches at an average cost of $2.97 ($199,584 : 67,200), 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 $79,200 eliminated Submission ew 21-4 Lew 21-5 ew 216 Prepare an incremental analysis showing whether the company should buy the switches (Enter negative amounts using erther a negative sign preceding the number eg.-45 or parentheses e.o. (45).) 21-2 21-18 Direct materials Make bre sults by ective Buy Buy Direct labor Net Income Increase (Decrease) Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost Wilma Company will incurs TO TEXT of additional costs if it | buys the switches
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