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Wilma Company must decide whether to make or buy some of its components. The couts of producing 67,200 switches for its generators are as follow

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Wilma Company must decide whether to make or buy some of its components. The couts of producing 67,200 switches for its generators are as follow Direct materials $91,000 Variable overhead $44.900 Direct labor 144,414 ved overhead 579,200 the be eliminated Instead of making the switches at an average cost of 2.97 ($190,564 +67,200), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the watch Prepare an incremental analysis showing whether the company should make or buy the switches (enter negative amounts using either a negative son preceding the number ..-5 parenthese.. (45).) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost Wilma Company will incurs of additional costs o the switches Would your answer be different if the released productive capacity will generate additional income of 540, 1767 (enter negative amounts using either a negative in preceding the numbe -45 or parentheses .g. (45).) Net Income Make Buy Increase (Decrease) Total Cost Opportunity COM Total cost the answer is The analysis shows that net income will be by s

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