Current Designs faces a number of important decisions that require incremental analysis.

One of Current Designs' competitive advantages is found in the ingenuity of its owner and CEO, Kevin Hall His involvement in the

design of kayak moulds and production techniques has led to Current Designs being recognized as an industry leader in the design and

in$-$

The "Revolution Seating System"is a one$-$of$-$a$-$kind, rotating axis seat that gives unmatched, full$-$contact, under$-$leg support. It is

production of kayaks. This ingenuity Was evident in an improved design of one of the most important components of a kayak, the seat.

quickly adjustable with a lever lock system that allows for a customnizable seat position that maximizes comfort for the rider.

Direct materials

$$23$

$/$unit

Direct labour

Fixed overhead

$$14$

$/$unit

$$20,000$

Having just designed the Revolution Seating System, Current Designs must now decide whether to produce the seats i internally or buy

them from an outside supplier. The costs for Current Designs to produce the seats are as follows.

Variable overhead

Current Designs will need to produce $3,050$ seats this year; $24\%$ of the fixed overhead will be avoided if the seats are purchased from

an outside vendor. After soliciting prices from outside suppliers, the company determined that it will cost $$51$ to purchase

a seat from

an outside vendor.