Part 1 - Incremental Analysis A few students in ACCT 621 need your help in performing an incremental analysis. The company has been manufacturing its own seats for its bicycles. The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials are $8.00 per unit and direct labor cost are $9.00 per unit. The company's normal production is 50,000 bicycles per year. A supplier is offering to make the bicycle seats at a price of $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products Requirements: (a) Prepare the incremental analysis for the decision to make or buy the bicycle seats. (b) Should the Company buy the seats from the outside supplier? Justify your