20 senopp me. na . been ne nu acturing its own shades ror its table pany is currently operating at 100% of capacity, and variable manufact amps. The charged to production at the rate of 70% of direct labor cost. The dirun direct labor cost per unit to make the lamp shades are $4 and 5erials production is 30,000 table lamps per year s. The com- facturing The direct $5, respectively. Normal overhead is and A supplier offers to make the lamp shades at a price of $12.75 per unit accepts the supplier's offer, all variable manufacturing costs will be elimine $45,000 of fixed manufacturing overhead currently being charged to the la have to be absorbed by other products. Instructions (a) Prepare the incremental analysis for the decision to make or buy the lamp shad (b) Should Schopp Inc. buy the lamp shades? (c Would your answer be different in (b) if the productive capacity rele 5 per unit. If Schopp eliminated, bu e capacity released by not making the lamp shades could be used to produce income of $25,0002