*Do It! Review 21-3 Wilma Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows. Direct materials $29,800 Variable overhead $45,400 Direct labor $29,940 Fixed overhead $76,400 Instead of making the switches at an average cost of $2.90 ($181,540+62,600), the company has an opportunity to buy the switches at $2.74 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 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 Direct labor 44 440D Variable manufacturing costs Fixed manufacturing 400 costs 4540 Purchase price172 Total cost Wilma Company will ncur sof additional costs if it the switches Would your answer be different if the released productive capacity will generate additional income of $51,384? (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