Wilma Company must decide whether to make or buy some of its components. The costs of producing 60,000 switches for its generators are as follows. Direct materials $29,000 Variable overhead $44,000 Direct labor $25,000 Fixed overhead $76,000 Instead of making the switches at an average cost of $2.90 ($174,000+ 60,000), 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-fourth of the fixed costs will be eliminated. Your answer is partially 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 eg. (45).) Net Income Increase (Decrease) Make Buy Direct materials 29000 29000 Direct labor 25000 i 25000 Variable manufacturing costs 44000 i 44000 Fixed manufacturing costs 76000 16000 Purchase price Total cost Wilma Company will incur $ of additional costs if it the switches Wilma Company will incur $ of additional costs if it the switches. eTextbook and Media Assistance Used e Textbook X Your answer is incorrect. Would your answer be different if the released productive capacity will generate additional income of $45,500? (Enter negative amounts using either a negative sign preceding the numberes.-45 or parentheses es. (451) Net Income Increase (Decrease) Make Buy Total Cost Opportunity cost Total cost the answer is the analysis shows that net income will be by $