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Instead of making the switches at an average cost of $2.97 ($195.129 + 65, 700), the company has an opportunity to buy the switches at
Instead of making the switches at an average cost of $2.97 ($195.129 + 65, 700), the company has an opportunity to buy the switches at $2.71 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).) Instead of making the switches at an average cost of $2.97 ($195.129 + 65, 700), the company has an opportunity to buy the switches at $2.71 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).)
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