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Wilma Company must decide whether to make or buy some of its components. The costs of producing 69,800 switches for its generators are as follows.

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Wilma Company must decide whether to make or buy some of its components. The costs of producing 69,800 switches for its generators are as follows. Direct materials$29,700 Direct labor Variable overhead $45,400 $80,400 51,806 Fixed overhead Instead of making the switches at an average cost of $2.97 $207,306 69,800 one-fourth of the fixed costs will be eliminated. the company has an opportunity to buy the switches at $2.74 per unit. If the company purchases the switches, all the variable costs and Prepare an incremental analysis showing 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 Increase (Decrease) Make Buy Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost 29700 $ 51806 45400 80400 29700 51806 45400 207306 $ Wilma Company will incur $ of additional costs if it the switches. Would your answer be different if the released productive capacity will generate additional income of $48,746 (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Make Buy Total Cost Opportunity cost Total cost 730 $ the answer is . The analysis shows that net income will be by s

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