Wilma Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows. Direct materials Direct labor $29,000 $28,644 Variable overhead Fixed overhead $44,400 $82,000 Instead of making the switches at an average cost of $2.94 ($184,044 - 62,600), the company has an opportunity to buy the switches at $2.69 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated