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Sweet Acacia Company must decide whether to make or buy some of its components. The costs of producing 60,800 switches for its generators are as

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Sweet Acacia Company must decide whether to make or buy some of its components. The costs of producing 60,800 switches for its generators are as follows. Direct materials $29,184 Variable overhead $51,680 Direct labour 43,168 Fixed overhead 62,016 Instead of making the switches at an average cost of $3.06 ($186,048 : 60,800), the company has an opportunity to buy the switches at $2.86 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated. (a) 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 Number of units: $Prepare an incremental analysis showing whether the company should make or but.r the switches. {Round per unit answers to 2 decimal pl'oces. es. 1 5.25. if an amount reduces the net income then enter with a negative sign preceding the number eg. 45.000 or parenthesis, e3 {15,0001} Per Unit Make Number of units: Purchase price Variable manufacturing costs Cost of good sold Fixed manufacturing costs Total annual cost Manufacturing overhead The company should v the components. Per Unit Make Number of units: $ The company should the components. make buy eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer(a) 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).) Net Income Increase Per Unit Make Buy (Decrease) $ LA $ The company should V the components

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