Maplewood Company must decide whether to make or buy some of its components. The costs of producing 60,000 switches for its generators are as follows. $45,000 Direct materials Direct labour $30,000 42,000 Variable overhead Fixed overhead 63,000 Instead of making the switches at an average cost of $3.00 ($180,000 = 60,000), the company has an opportunity to buy the switches at $2.80 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated. v (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).) Net Income Increase (Decrease) Per Unit Make Buy Number of units: Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The company should the components