Sheridan Company must decide whether to make or buy some of its components. The costs of producing 59,000 switches for its generators are as follows. Direct materials $28,910 Variable overhead $38,350 Direct labour 40,710 Fixed overhead 56,640 Instead of making the switches at an average cost of $2.79 ($164,610 59,000), the company has an opportunity to buy the switches at $2.59 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).) Per Unit Make Buy Net Income Increase (Decrease) Number of units: enter a number of units select an item $enter a dollar amount rounded to 2 decimal places $enter a dollar amount $enter a dollar amount $enter a dollar amount select an item enter a dollar amount rounded to 2 decimal places enter a dollar amount enter a dollar amount enter a dollar amount select an item enter a dollar amount rounded to 2 decimal places enter a dollar amount enter a dollar amount enter a dollar amount select a closing name $enter a total amount $enter a total amount $enter a total amount The company should select an option the components. Question Part Score--/7 Would your answer be different if the released productive capacity would generate additional income of $27,460? If the released capacity can generate additional income of $27,460, then the company should select an option the components.