Exercise 20-5 Pottery Ranch nc. has been manufacturing its own rials or its curtain rod The company is currently up rating a 100% ? capooty, and per unit to make a pair of finals are 3.85 and $4.75, respectively. Normal production is 29,700 curtain rods per year. variable manufacturing overhe ad is charged to production at he rate of 65% c direct labor cost he direct materials and s and rec abur cost direct laber A supp er offers to make a pair offinals ?t a price of $13.06 per unit. by other products. Po tery Ranch accepts he suppliers tter, all anable manufacturing costs will be eliminated, but the S43,000 offi ed manufacturing ? erhead currently being charged to the finlals will have ill be eliminated, ta be absorbed Prepare an incremental ana ysis to decide if Pottery anch s ou buy he inia s Roun answers to O dec nal places e.a ?250. Enter ne a ne amounts usan ev her a negative so n preceding the number ea 45 or parentheses c Make Buuy Increase (Decrease) Direct materials Direct labur Variable overhead costs Fixed manufacturing casts Purchase price Total annual cost Should Pottery Ranch buy the finlals? Pottery Ranch should the finlals Would your answer be different in (b) If the productive capacty released by not making the finials could be used to produce income of $47,6637 Y income would by $