et > Open Assignment TRACK NEXT HENT RESOURCES ent2 Win 20 CALCULATOR PRINTER VERSION Question 2 Wilma Company must decide whether to make or buy some of its components. The costs of producing 60,200 switches for its generators are as follows. Direct materials $29,500 Variable overhead $45,600 Direct labor $25,900 Fixed overhead $79,600 Score Beauty Study ve Instead of making the switches at an average cost of $3.00 (5180,600 + 60,200), 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 make or buy the switches (Enter negative amounts using either a negative sin preceiling the number eg.-45 or parentheses .g. (45).) Net Income Make Buy Increase (Decrease) Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost Wilma Company wil incurs of additional costs if the switches Antec I.2000:202 Wile. Sonjat. All Rights Reserved. A Division of the Wiley. In ver4111 dy Would your answer be different if the released productive capacity will generate additional income of $48,198? (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 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 Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER BBC 2000-2021 Wley Sons Inc. All Rights Reserved. A Division of ohn Wiley Sonunc. Version 4.24211