Splish Company must decide whether to make or buy some of its components. The costs of producing $59,600$ switches for its

generators are as follows.

Instead of making the switches at an average cost of $$2\mathrm{.}99($$$178,20459,600),$ the company has an opportunity to buy the switches

at $$2\mathrm{.}79$ per unit. If the company purchases the switches, all the variable costs and one$-$third 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. $($Round per unit answers to $2$

decimal places, e$.$g$.15\mathrm{.}25.$ If an amount reduces the net income then enter with a negative sign preceding the number e$.$g$.-15,000$ or

parenthesis, eg$.(15,000).)$