Bennie's Unicycle Company manufactures its own seats for its unicycles. The company is currently operating at 100% capacity. Variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials cost for each bike seat is $8 and the direct labor cost per bike seat is $9. Bennie's generally produces 50,000 unicycles each year. A supplier offers to make the unicycle seats at a price of $21 each. If Bennie's accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the unicycle seats will have to be absorbed by other products. Instructions (a) Prepare the incremental analysis for the decision to make or buy the unicycle seats. What is the incremental effect on net income (in dollars) if Bennie's purchases the unicycle seats from the supplier? You must show your work to receive credit. (8 points) (b) Should Bennie's Unicycle Company buy the seats from the outside supplier? Why or why not? Explain. (4 points) (c) In an incremental analysis, what qualitative factors are relevant in deciding whether to purchase the unicycle seats from the outside supplier? Explain. Identify four relevant considerations. (4 points) (c) In an incremental analysis, what qualitative factors are relevant in deciding whether to purchase the unicycle seats from the outside supplier? Explain. Identify four relevant considerations. (4 points) Edit View Insert Format Tools Table 12pt Paragraph BIU AT2 : P O words