Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,100 switches for its generators are as follows.

Direct materials		$28,959		Variable overhead		$40,779
Direct labour		41,961		Fixed overhead		60,282

Instead of making the switches at an average cost of $2.91 ($171,981 59,100), 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-third of the fixed costs will be eliminated.

(a)

Prepare an incremental analysis showing whether the company should make or buy the switches. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).)

				Per Unit		Make		Buy		Net Income Increase (Decrease)
Number of units:		enter a number of units
				$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
				enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
				enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
						$enter a total amount		$enter a total amount		$enter a total amount

The company should select an option makebuy the components.