Ivanhoe Company must decide whether to make or buy some of its components. The costs of producing 67,900 switches for its generators are as follows. Direct materials Direct labor (a) Variable overhead $29,400 $42,526 Fixed overhead Instead of making the switches at an average cost of $2.94 ($199,626 67,900), the company has an opportunity to buy the switches at $2.68 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Direct materials 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).) $45,300 $82,400 +A Make LA Buy Net Income Increase (Decrease)

Ivanhoe Company must decide whether to make or buy some of its components. The costs of producing 67,900 switc's for its generators are as follows. Instead of making the switches at an average cost of $2.94($199,626+67,900), the company has an opportunity to buy the switche: at $2.68 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Prepare an incremental analysis showing whether the company should make or buy the switches, (Enter negotive amounts using either a negative sign preceding the number es. -45 or parentheses es. (45)) Ivanhoe Company must decide whether to make or buy some of its components. The costs of producing 67,900 switches for its generators are as follows. Instead of making the switches at an average cost of $2.94($199.626+67.900), the company has an opportunity to buy the switches at $2.68 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 negotive omounts using either a negative sign preceding the number es. -45 or parentheses es. (45)J