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 $30,200 Variable overhead $44,800 Direct labor $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 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).) Direct materials $ Make 30,200 $ Buy 0 $ Net Income Increase (Decrease) 30,200 Direct labor 31,844 i 0 31,844 Variable 44,800 i 0 44,800 manufacturing costs Fixed manufacturing 77,200 i costs Purchase price Total cost $ 184044 0 Sheridan Company will incur $ of additional costs if it buys the switches