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

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Accounting

Sunland 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
Instead of making the switches at an average cost of $2.97($199,58467,200), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.
(a)
Your answer is partially correct.
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).)
Direct
materials
Direct labor
Variable
manufacturing
costs
Fixed
manufacturing
costs
Purchase
price
Total cost
Net I
Buy
Increase
$
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