Wildhorse 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 $30,200 Variable overhead $45,900 Direct labor $38,252 Fixed overhead $81,200 Instead of making the switches at an average cost of $2.91 ($195,552 + 67,200), 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 xed costs will be eliminated. (a) V Your answer is correct. 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 eg. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Direct materials to 30200 0 to 30200 Direct labor 38252 0 38252 Variable manufacturing 45900 0 45900 costs Fixed manufacturing 81200 60900 i 20300 costs Purchase price 0 179424 i -179424 Total cost $ 195552 240324 i $ -44772 Wilma Company will incur $ 44772 of additional costs if it buys the switches.(b) Would your answer be different if the released productive capacity will generate additional income of $48,952? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Total Cost LA $ Opportunity cost Total cost $ $ $ , the answer is v . The analysis shows that net income will be V by $