Wilma company will incur $_____________ of additional cost if it (Buy or Makes) the switches.

(Yes or No), the answer is (Same of different). The analysis shows that net income will be (decreased or increased) by $_______________.

Please use an excel and use the same format as the question.

Wilma Company must decide whether to make or buy some of its components. The costs of producing 60,000 switches for its generators are as follows. Direct materials $30,000 Variable overhead $45,000 Direct labor $42,000 Fixed overhead $60,000 Instead of making the switches at an average cost of $2.95 ($177,000 = 60,000), the company has an opportunity to buy the switches at $2.7 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 make or 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 30000 30000 Direct labor 42000 42000 Variable manufacturing costs 45000 45000 Fixed manufacturing costs 60,000 Purchase price Total cost 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 $34,000? (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 Total Cost Opportunity cost Total cost 4, the answer is . The analysis shows that net income will be by $