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Pottery Ranch Inc. has been manufacturing its own finlals for its curtain rods. The company is aumenty operating FULL SCREEN PRINTER VERSION labor cost. The direct materials and direct labor cost per at 100% capacity and variable manufacturing overhead is charged to production at the rate of 58w of unit to make a pair of finals are $3,8S and SA97, respectvely. Normal production is ourtain per rear. A supplier offers to make a pair of finiais at a price of s12.96 perunit PotteryRanch accepts the supplier softer al variablemanufacturing costs w be eliminated, but the se6A00 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare an incremental analysis to decide potteryRanch should buy the finals. (Round answers to odecimalplaces.s 1250. Enter negative amounts using either a negative sign preceding the number eg Net Income Increase (Decrease) variable overhead costs Total annual cost (b) should Pottery Ranch buy the fnials? Pottery Ranch should (c) All Rights Reserved.
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