Sandhill 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.

Instead of making the switches at an average cost of $),$ the company has an opportunity to buy the switc

at $$2\mathrm{.}75$ per unit. If the company purchases the switches, all the variable costs and one$-$fourth of the fixed costs will be eliminated

Your answer is partially correct.

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

Increase $($Decrease$)$

Direct materials

$

$

$

$29700$