.BACKED PRNTER VERSION Exercise 21-5 potteny Ranch Inc has been manufacturing its own finials for its curtain rods. The cmany is currentiy operating t ia sane t)3 o7 and s4hie renpectwey to at 100% ofcapacity, and variable manufacturingoverhead is charged and direct labor cost per unit to make a pair of finials are $3.67 and $4.68, respectively. Normal production is r to production at the rate of 69% or direct labor cost. The direct materials 25,400 curtain rods per year A supplier offers to make a pair of finials at a price of $13.21 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufactu of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. Prepare an incremental analysis to decide if Pottery Ranch should buy the finials. (Round answers to o decimal negative sign preceding the number e.g. -45 or parentheses e.g. (45).) places, e.g. 1,225. Enter negative amounts using either a Net Income Make Buy Increase (Decrease) Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost Should Pottery Ranch buy the finials? B the finials. Pottery Ranch shoukd Would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $47,022 by s income would