CALCULATOR PRINTER VERSION MACK RERT SIGNMENT RESOURCES apter 20 Homework aded Anment Event 20-05 Der 20-02 Det er 20-06 LE 26-02 Exercise 20-05 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finals are 54 and 85, respectively. Normal production is 28,400 curtain rods per year A supplier offers to make a pair of this at a price of $13.35 per unt. It Pottery Ranch accepts the spotier's offer, al veritable mufacturing costs wil be eliminated but the $45,900 of ved manufacturing overhead currently being charged to the finals will have to be absorbed by other product (a) Prepare the incremental analysis for the decision to make or buy the finals. (inter negative amounts winy other negative in preceding the number - ar parentheses (45).) view Score view Results by Study Make Buy Net Income Increase (Decrease) Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost $ 5 Should Pottery Ranch buy the finals? Previous Nest (b) Should Pottery Ranch buy the finials? , pottery Ranch should the finals. Would your answer be different in (b) If the productive capacity released by not making the finals could be used to produce income of $36,920? Income would Click if you would like to show Work for this question: Open Show Work