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) 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 es-45 or parentheses es. (45) Net Income Increase (Decrease) Make Buy $ $ Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price $ Total cost 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) 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 Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price $ Total cost of additional costs if it the switches Wilma Company will incur $ buys makes e Textbook and Media