Wilma 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 Direct labor $30,200 $38,252 Variable overhead Fixed overhead $45,900 $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 fixed costs will be eliminated. (a) Your answer has been saved. See score details after the due date. 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 es (45)) Net Income Increase (Decrease) Make Buy 30220 $ $ 30220 Direct materials 38252 38252 Direct labor 45900 45900 Variable manufacturing costs Fixed manufacturing costs 81200 60900 20300 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 e.g. -45 or parentheses es. (451) Make Buy Net Income Increase (Decrease) Direct materials $ 30220 30220 38252 38252 45900 45900 Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price 81200 60900 20300 179424 179424 (179424 Total cost 195572 $ 240324 (44752) Wilma Company will incur $ 44752 of additional costs if it buy the switches 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 eg.-45 or parentheses eg. (45).) Make Net Income Increase (Decrease) Buy Total Cost $ $ Opportunity cost Total cost $ the answer is The analysis shows that net income will be by $ increased decreased Nould 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).) Make Buy Net Income Increase (Decrease) Total Cost $ Opportunity cost Total cost $ V the answer is The analysis shows that net income will be by $ same different e Textbook and Media