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Do It! Review 7-3 Wilma Company must decide whether to make or buy some of its components. The costs of producing 68,900 switches for its
Do It! Review 7-3 Wilma Company must decide whether to make or buy some of its components. The costs of producing 68,900 switches for its generators are as follows. Direct materials $30,200 Direct labor $46,455 Variable overhead $44,600 Fixed overhead $82,000 Instead of making the switches at an average cost of $2.95 ($203,255 68,900), the company has an opportunity to buy the switches at $2.66 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 make or buy the switches. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost Wilma Company will incur $ of additional costs if it the switches CALCULATOR PRINTER VERSION BACK NEXT Purchase pnce Total cost Wilma Company will incur $ of additional costs if it the switches. LINK TO TEXT Would your answer be different if the released productive capacity will generate additional income of $45,8997 (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Total Cost Opportunity cost Total cost o the answer is . The analysis shows that net income will be Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Question Attempts: 0 of 3 used
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