Pharoah Company must decide whether to make or buy some of its components. The costs of producing 63,800 switches for its generators are as follows.
				Direct materials	$29,300	Variable overhead	$44,200
Direct labor	$30,634	Fixed overhead	$82,800
Instead of making the switches at an average cost of $2.93 ($186,934 63,800), the company has an opportunity to buy the switches at $2.74 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	Det Income Increase/Decrease
Direct materials
Diret Labor
Variable manufacturing costs
p;urchase price
total cost
pharoah company will incur $		_________________
of Additional cost if it		(Buys / Makes)	the switches