Current Attempt in Progress Wildhorse Company purchases sails and produces sailboats. It currently produces 1,250 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Wildhorse purchases sails at $253 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $94 for direct materials. $81 for direct labor, and $90 for overhead. The $90 overhead is based on $78,750 of annual fixed overhead that is allocated using normal capacity The president of Wildhorse has come to you for advice. "It would cost me $265 to make the sails," she says, "but only $253 to buy them. Should I continue buying them, or have I missed something? Your Answer Correct Answer (Used) Prepare a per unit analysis of the differential costs. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses eg. (453) Make Sails Buy Sails Net Income Increase (Decrease) Direct material 94 94 Direct labor 81 1 31 Variable overhead 27 27 253 Purchase price -25 202 $ 253 $ Total unit cost -51 (b) ir Wildhorse suddenly finds an opportunity to rent out the unused capacity of its factory for $79,700 per year, would your answer to part (a) change? This is because the net income will by $