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Wilma Company must decide whether to make or buy some of its components. The costs of producing 65,900 switches for its generators are as follows
Wilma Company must decide whether to make or buy some of its components. The costs of producing 65,900 switches for its generators are as follows Direct materials $31,000 Variable overhead $44,800 Direct labor $37,028 Fixed averhead $79,6aa Instead of making the switches at an average cost of $2.92 S192 428 65 900), the company has an opportunity to buy the switches at S2.75 per unit. If the company Purchases the switches all the variable costs and one-fourth of the fixed costs will be eliminated. Your answer is pertielly correct. Try again. Prepare an incremental analysis shawing whether the company should buy the switches. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Make Buy Drect materals Direct labor Variable manufacturing costs Fixed manufacturing costs Purchese price 59700 Total cost 252128 59700 Wilma Company will incur of additional costs if it buys he switches. LINK TO TEXT Your answer is partially correct. Try again. Would your answer be different if the released productive capacity will generate additional income of S52,747? (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 Tatal Cost Opportunity cost Total cost 451 the answer il different The analysis shows thet net income will be by
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