Carla Vista Company must decide whether to make or buy some of its components. The costs of producing 64,400 switches for its generators are as follows. Direct materials $29,200 Variable overhead $45,600 Direct labor $31,404 Fixed overhead $81,200 Instead of making the switches at an average cost of $2.91 ($187,404 + 64,400), the company has an opportunity to buy the switches at $2.67 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).) Make Net Income Increase (Decrease) Buy Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost Carla Vista Company will incur $ of additional costs if it the switches. Would your answer be different if the released productive capacity will generate additional income of $49,9142 (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Total Cost $ Opportunity cost Total cost Jers' F ce with by $ the answer is The analysis shows that net income will be