Do It! Review 7-3 Wilma Company must decide whether to make or buy some of its components. The costs of producing 64,400 switches for its generators are as follows Direct materials $29,200 Variable overhead $45,600 Direct labor $31,404 Fixed overhead $81,200 Instead of making the switches at an average cost of $2.91 ($187,404 64,400), the company has an opportunity to buy the switches at $2.67 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated Your answer is partially correct. Try again. 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 Increase (Decrease) Make Buy 29200 29200 Direct materials Direct labor 31404 45600 81200 31404 Variable manufacturing costs 45600 Fixed manufacturing costs 81200 81200 Purchase price 0 187404 187404 Total cost 187404 268604 81200 81200 buys T Would your answer be different if the released productive capacity will generate additional income of $49,914? (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 187404 268604 81200 Opportunity cost Total cost 268604 Yes different increased , the answer is The analysis shows that net income will be by $ Click if you would like to Show Work for this question: Show Work