* Question 7 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 Direct labour $28,959 Variable overhead 41,961 Fixed overhead $40,779 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. 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: $ $ $ The company should the components. Would your answer be different if the released productive capacity will generate additional income of $30,768? the components. If the released capacity can generate additional income of $30,768, then the company should