View Policies Current Attempt in Progress Blue Spruce 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 65% of direct labor co he direct materials and direct labor cost per unit to make a pair of finials are $4 and $5.respectively. Normal production is 29,700 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.05 per unit. If Blue Spruce accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $43,000 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products, (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e g. (45).) Make Net Income Increase (Decrease) Buy Direct materials $ $ $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price 30 tv Question 3 of 4 > !!! Fixed manufacturing costs Purchase price Total annual cost $ s (b) Should Blue Spruce buy the finials? No : Blue Spruce should not buy the finals. (c) Would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $30,6602 Yes Income would increase by $ eTextbook and Media Save for Later Last saved 26 minutes ago Attempts: 0 of 3 used Submit Answer 30 sty