Question 5 Wilma Company must decide whether to make or buy some of its components. The costs of producing 64,800 switches for its generators are as follows. Direct materials $30,700 Direct labor $34,552 Variable overhead Fixed overhead $44,900 $83,600 Instead of making the switches at an average cost of $2.99 ($193,752 = 64,800), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) 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).) Net Income Increase (Decrease) Make Buy Direct materials $ $ $ Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost $ $ $ Wilma Company will incur $ of additional costs if it the switches. Click if you would like to Show Work for this question: Open Show Work