6 educationmiley'com C I NWF Assessment Player Ul Application QuestionSoin 0.33/05 ;: : Indigo Inc, has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 50% of direct labour costs The direct materials and direct labour costs per unit to make the lampshades are $460 and $5.90, respectively. Normal production is 48,800 table lamps per year. A supplier offers to make the lampshades at a price of $1370 per unit. If Indigo Inca accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $48,400 ofxed manufacturing overhead currently being charged to the lampshades will have to be absorbed by other products (a) Your Answer Correct Answer V Your answer is correct' Prepare the incremental analysis for the decision to make or buy the lampshades, (Round answers to 0 decimal places, 5.3. 5,275. If an amount reduces the net income then enter with a negative sign preceding the number eg. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant xed costs should be included in both options when solving this problem) Net Income Buy Increase (Decrease) 6 educationwiley'com C I NWF Assessment Player Ul Application Question 5 oin 0.33 / 0.5 '5 Prepare the incremental analysis for the decision to make or buy the lampshades, (Round answers to 0 decimal places, 6.3. 5,275. If an amount reduces the net income then enter with a negative sign preceding the number eg. 45,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant xed costs should be included in both options when solving this problem) Net Income Amber of units: 48,800 Make Buy Increase (Decrease) 0 Direct materials o Direct labour 1 Variable manufacturing overhead o Fixed manufacturing overhead o Purchase price o Total annual cost eTextbook and Media Solution Attempts: 2 of 2 used educationmiley'com C I NWF Assessment Player Ul Application QuestionSoin 0.33/05 '5 5 Should Indigo Incl buy the lampshades? Indigo Inc. should the lampshades. eTextbook and Media Attempts: 1 of 2 used (C) Would your answer be different in part (b) ifthe productive capacity released by not making the lampshades could be used to produce income of $28,100? ,income would c by$ eTextbook and Media Save for Later Attempts: O of 2 used submit