work bo iti Review 7-3 Wilma Company must decide whether to make or buy some of its components. The costs of producing 67,200 switches for its generators are as follows. Direct materials $31,000 Variable overhead $44,900 Direct labor $44,484 Fixed overhead $79,200 -2 Instead of making the switches at an average cost of $2.97 ($190,567,200), the company has an opportunity to buy the switches at $2.75 per unt. If the company purchases the switches, at the variable costs and one fourth of the fixed costs will be eliminated. 5 b. [Video] -22 (Part on) Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sin preceding the number ... 45 or parentheses e... (45).) Net Income Buy Increase (Decrease) -Port on) Make Direct materiais (Video) Direct labor Variable manufacturing costs by Study Fixed manufacturing costs Purchase price Total cost the switches of additional costs if Wilma Company will incurs FR Your answer is incorrect. Try again + Would your answer be different if the released productive capacity will generate additional income of $48,176? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 20) Make Buy Net Income Increase (Decrease) Total Cost Opportunity cost Total cost the answer is The analyss shows that net income will be