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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
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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