$26)$ Make vs Buy $(8$ marks$)$ Nice Day specializes in providing event planning services to corporate ciients. Nice Day makes Gift Bag to handed $-$ont to guests attending corporate events. Nice Day incurs the following costs to produce $20,000$ Gift Bags each year.

Direct materials Direct labour Overhead

$$50,00080,0001,00,000$

Of the overhead costs, $40\%$ is variable while the remainder of the overhead costs are fixed and is allocated based on labour hours. A trusted supplier offers to sell gift bags to Nice Day for $$10$ each Prepared an incremental analysis to determine if Nice Day should buy the gift bag$>$ from. the supplier? $(6$ marks$)$

b$)$ Frepared an inaremental analysis to determine if Nice Day should buy the gift begs from the supplier it the ne AO capacity can be used to generate $$40,000$ additional income from another opportunity?