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E7.5 (LO 3), AN Pottery Ranch Inc. has been manufacturing its own finials for its curtain rode The company is currently operating at 100% of

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E7.5 (LO 3), AN Pottery Ranch Inc. has been manufacturing its own finials for its curtain rode The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 70% of direct labor cost. The direct materials and direct labor cost her! unit to make a pair of finials are $4 and $5, respectively. Normal production is 30,000 curtain rods per year. A supplier offers to make a pair of finials at a price of $12.95 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45.000 of fixed manuts turing overhead currently being charged to the finials will have to be absorbed by other products. o noso see Instructions blo o d 000. Colib 0082 bin no no a. Prepare the incremental analysis for the decision to make or buy the finials. b. Should Pottery Ranch buy the finials? collo no logo c. Would your answer be different in (b) if the productive capacity released by could be used to produce income of $20,000? I by not making the fini

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