Sunland Company must decide whether to make or buy some of its components. The costs of producing 60,200 switches for its generators are as follows. Direct materials Direct labor (a) Variable overhead $29,500 $25,900 Fixed overhead Instead of making the switches at an average cost of $3.00 ($180,600 60,200), the company has an opportunity to buy the switches at $2.74 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Direct materials 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).) $45,600 $79,600 69 Make tA $ Buy tA $ Net Income Increase (Decrease)

Sunland Company must decide whether to make or buy some of its components. The costs of producing 60,200 switches for its generators are as follows. Instead of making the switches at an average cost of $3.0$($180,600+60,200), the company has an opportunity to buy the switches at $2.74 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. (a) 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 es. -45 or parentheses eg. (45), Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using elther o negative sign preceding the number eg. -45 or parentheses eg. (45).) Wilma Company will incurs of additional costs if it the switches