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Ivanhoe Company must decide whether to make or buy some of its components. The costs of producing 64,200 switches for its generators are as

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Ivanhoe Company must decide whether to make or buy some of its components. The costs of producing 64,200 switches for its generators are as follows. Direct materials $29,600 Variable overhead $44,100 Direct labor $33,932 Fixed overhead $82,400 Instead of making the switches at an average cost of $2.96 ($190,032 + 64,200), 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. Would your answer be different if the released productive capacity will generate additional income of $47,362? (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Total Cost Opportunity cost Total cost A 67 Make $ $ 67 Buy Net Income Increase (Decrease) 67 $ the answer is The analysis shows that net income will be $ LA by $

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