Whidhorse inc has becn manufacturing its own finials for its cartain rods. The comparry s currently operating at 100c of capacity, and variable manufacturing overhead is charged to production at the rate of 65% of direct labor cost. The 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 fods per year. A supplier offers to make a pair of finials at a price of $13.05 per unit \& Widhorse accepts the supplier's offer, ali variable manufacturing costs will be eliminated, but the $43,000 of fyoed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) the numberes 45 or parmoneses (45) Should Wachorse buy the finials? Wildhorseshould the finials. Should Wilchorse buy the finials? $30,660 ? $20,660
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