Business, 04.04.2020 08:46 brrodriguez8oz5wvf

Sarasota Company must decide whether to make or buy some of its components. The costs of producing 64,200 switches for its generators are as follows. Direct materials $29,600 Variable overhead $44,100 Direct labor $33,932 Fixed overhead $82,400 Instead of making the switches at an average cost of $2.96 ($190,032 ÷ 64,200), the company has an opportunity to buy the switches at $2.67 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.

Prepare an incremental analysis showing whether the company should buy the switches. (Enter negative amounts using either a negative sign preceding the number e. g.-45 or parentheses e. g. (45).)

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Sarasota Company must decide whether to make or buy some of its components. The costs of producing 6...

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