Please do not give solution in image format thanku Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts usingeither a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Direct materialsDirect laborVariable overheadFixed overheadPurchase priceTotal cost$Wilma Company will incur $Make$$Buyof additional costs if it$$Net IncomeIncrease (Decrease)the switches. Sheridan Company must decide whether to make or buy some of its components. The costs of producing 61,300 switches for itsgenerators are as follows.Direct materialsDirect labor$30,100 Variable overhead$26,670Fixed overhead$44,600$76,400Instead of making the switches at an average cost of $2.90 ($177,770+61,300), the company has an opportunity to buy the switcheat $2.72 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.

MAKE OR BUY DECISION The make-or-buy decision is choosing between manufacturing a product within a…

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 overhead Fixed overhead Purchase price Total cost $ $ Wilma Company will incur $ Make $ $ Buy of additional costs if it $ $ Net Income Increase (Decrease) the switches.

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 overhead Fixed overhead Purchase price Total cost $ $ Wilma Company will incur $ Make $ $ Buy of additional costs if it $ $ Net Income Increase (Decrease) the switches.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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