Question: D Question 29 6 pts Problem #2 - Make or Buy Ris Company purchases sails and produces small sailboats (that require a single sal). It

 D Question 29 6 pts Problem #2 - Make or Buy

D Question 29 6 pts Problem #2 - Make or Buy Ris Company purchases sails and produces small sailboats (that require a single sal). It currently produces 1.200 sailboats per operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $100 for direct material, $80 for direct labor and $90 for overhead. The overhead includes $78,000 of annual fixed overhead that is currently allocated to the sailboat production The president of Rigas has come to you for advice. "It would cost me $270 to make the sails' she says, "but only $250 to buy them. Should I continue buying them, or have I missed something?" Q1: What is the incremental cost per unit for Riegs to make the sails

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