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Questions Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,800 switches for its generators are as

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Questions Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,800 switches for its generators are as follows. Direct materials $30,498 Variable overhead $54,418 Direct tabour 41,262 Fixed overhead 59,202 Instead of making the switches at an average cost of $3.10 ($185,380 + 59,800), the company has an opportunity to buy the switches at $2.90 per unit. If the company purchases the switches, al 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 sige preceding the number e.g. - 15,000 or parenthesis, e.g. (15,000).) Net Income Increase Per Unit Make Buy (Decrease) Number of units The company should the components LITTEET

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