Sheridan Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows. Direct materials Direct labor $30,200 Variable overhead $44,800 $31,844 Fixed overhead $77,200 Instead of making the switches at an average cost of $2.94 ($184,044 62,600), the company has an opportunity to buy the switches at $2.73 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) Your Answer Correct Answer Your answer is 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).) (b) Make Direct materials 30,200 i Direct labor 31,844 i Variable manufacturing 44,800 i costs Fixed manufacturing costs Purchase price Total cost $ 184044 Buy Net Income Increase (Decrease) 0 $ 30,200 0 31,844 44,800 77,200 i 57900 i 19300 170898 i -170898 228798 i Sheridan Company will incur $ 44754 of additional costs if it buys the switches. eTextbook and Media Solution -44754 Assistance Used Attempts: 3 of 3 used Would your answer be different if the released productive capacity will generate additional income of $49,014? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Total Cost Opportunity cost Total cost $ Make 184044 $ $ Buy 228798 $ 0 $ Net Income Increase (Decrease) -44754 the answer is The analysis shows that net income will be by $