- / 1 Pottery Ranch Inc. has been manufacturing its own finials for its curtain...
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- / 1 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100 and variable manufacturing overhead is charged to production at the rate of 68% of direct labee cost. The direct mater direct labor cost per unit to make a pair of finals are $4 and 55, respectively. Normal productions 25 300 curtain Padi pere. A supplier offers to make a pair officials at a price of $ 12.95 per unit. If Pottery Ranch accepts the per otter, manufacturing costs will be eliminated, but the $ 46,000 of fixed manufacturing overhead currently being ched to the have to be absorbed by other products, (a) Prepare the incremental analysis for the decision to make or buy the founder negative amounts using the one getirile preceding the number. -45 or parentheseses (451) Net income Make Thuy Direct materials Direct lation Variable owerhead costs Fixed manufacturing Purchase Total anaval cost (b) Should Pottery Ranch buy the hand Pottery Ranch should the (c) Would your answer be different in it the productive capacity and by not making the could be used to do income $1841 Income would by
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