Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,700 switches for its generators are as follows. Direct materials Direct labour $30,447 42.387 Variable overhead Fixed overhead $39,999 57,312 Instead of making the switches at an average cost of $2.85 ($170,145:59,700), the company has an opportunity to buy the switches at $2.65 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated. (a) (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: 59700 Variable manufacturing costs $ 2.85 $ Fixed manufacturing costs 2.65 Cost of good sold Total annual cost $ (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 (Decrease) Per Unit Make Buy 2.85 $ $ $ 2.65 $ $ $