D Question 30 6 pts Problem #2 - Make or Buy Rigs Company purchases sails and produces small sailboats (that require a single sait currently produces 1.200 sailboats per year 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 Riggs 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? Q2: At this point, is it more cost effective for Rizes to make or buy the sails? Make the sails fluy the sails