Question: please answer A. B. C. Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100%



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 63% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finals are $4 and $5, respectively, Normal production is 32,100 curtain rods per year. Asupplier offers to make a pair of finials at a price of $13.35 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $49,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. Prepare the incremental analysis for the decision to make or buy the finals (Enter negative amound using either a negative sem preceding the number 08. -45 or parentheses es (451) Net Income Increase (Decrease Make Buy Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Totalaus.com (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using alther o negative sien preceding the number e.s. -45 or parentheses 6.8(451) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total anual cost $ $ (6) Should Pottery Ranch buy the finals! Pottery Ranch should the finals Purchase price Total annual cost $ (b) Should Pottery Ranch buy the finals? Pottery Ranch should the finals (c) Would your answer be different in (b) If the productive capacity released by not making the finals could be used to produce income of $44.9207 income would
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