Sunland Company must decide whether to make or buy some of its components. The costs of producing 67,200 switches for its generators are as follows. Direct materials Direct labor (a) $31,000 $44,484 Variable overhead Direct materials Fixed overhead Instead of making the switches at an average cost of $2.97 ($199,58467,200), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. 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).) $44,900 $79,200 tA Make Buy LA Net Income Increase (Decrease)

Sunland Company must decide whether to make or buy some of its components. The costs of producing 67,200 switches for its generators are as follows. Instead of making the switches at an average cost of $2.97($199,584+67,200), the company has an opportunity to buy the switches at $2.75 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 e.g. 45 or parentheses es. (45).)