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Riverbed Company must decide whether to make or buy some of its components. The costs...

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Accounting

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Riverbed Company must decide whether to make or buy some of its components. The costs of producing 65,900 switches for its generators are as follows Direct materials $31,000 Variable overhead $44,800 Direct labor $37,028 Fixed overhead $79,600 Instead o making the switches at an average costof $2.92 $192 428 and onc fourth of the fixed costs will be climinated. 5,900 the company as an opportunity to y e switches at $2 75 per unit. i e company purchas es he s itches, a e var able costs Your answer is partially correct. Thy again Prepare an incremental analysis showing whether the company should make or buy the switches. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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