Current Attempt in Progress Splish Company must decide whether to make or buy some of its components. The costs of producing 59,600 switches for its generators are as follows. Direct materials Direct labour $30,396 Variable overhead 42,912 Fixed poverhead (a) $47,680 57,216 Instead of making the switches at an average cost of $2.99 ($178,204 +59,600), the company has an opportunity to buy the switches at $2.79 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated. Prepare an incremental analysis showing whether the company should make or buy the switches. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number e.g.-15,000 or parenthesis, e.g. (15,000).)

Splish Company must decide whether to make or buy some of its components. The costs of producing 59,600 switches for its generators are as follows. Instead of making the switches at an average cost of $2.99($178,204+59,600), the company has an opportunity to buy the switches at $2.79 per unit. If the company purchases the switches, all the variable costs and one-third of the fuced costs will be eliminated. (a) Prepare an incremental analysis showing whether the company should make or buy the switches. (Round per unit answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number e.g. 15,000 or parenthesis, e.g. (15,000). Would your answer be different if the released productive capacity would generate additional income of $28,924? If the released capacity can generate additional income of $28.924, then the company should the components