Wilma Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows. $30,200 Variable overhead Direct materials Direct labor $44,800 $31,844 Fixed overhead $77,200 Instead of making the switches at an average cost of $2.94 ($184,044 + 62,600), the company has an opportunity to buy the switches at $2.73 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 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).) Make Buy Net Income Increase (Decrease) Direct materials 30200 30200 Direct labor 31844 i 31844 Variable manufacturing costs 44800 i 44800 Fixed manufacturing costs 77200 57900 19300 Purchase price 170898 i 170898 Total cost 184044 $ 228798 -44754 Wilma Company will incur $ 44754 of additional costs if it buys the switches Would your answer be different if the released productive capacity will generate additional income of $49,014? (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Make Net Income Increase (Decrease) Buy Total Cost $ Opportunity cost Total cost $ $ the answer is The analysis shows that net income will be C by $