Wilma Company must decide whether to make or buy some of its components. The costs of producing 63,800 switches for its generators are as follows. Direct materials $29,100 Variable overhead $44,800 Direct labor $40,462 Fixed overhead $76,400 Instead of making the switches at an average cost of $2.99 ($190,762 63,800), the company has an opportunity to buy the switches at $2.70 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. 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).)

Increase (Decrease) Buy Direct mat Direct labor variable manufacturing costs Fixed manufacturing costs Purchase price of additional costs if it Wilma Company will incur s Would your answer be different if the released productive capacity will generate additional income of $42,718? (Enter negative amounts using either a negative sign preceding the number eg, -45 or parentheses eg. (45).) Make Opportunity cost he answer is The analysis shows that net income will be by