JUST PART B :))

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 Fixed overhead $44,600 $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) 30200 Direct materials 30200 Direct labor 46455 46455 Variable manufacturing costs 44600 44600 Fixed manufacturing costs 82000 61500 20500 Purchase price 183274 -183274 Total cost $ 203255 244744 $ -41519 Wilma Company will incur $ 41519 of additional costs if it buys the switches. Would your answer be different if the released productive capacity will generate additional income of $45,899? (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 203255 Opportunity cost 45899 Total cost 249154 45899 No 9, the answer is different =). The analysis shows that net income will be increased by $ Click if you would like to Show Work for this question: Open Show Work