Exercise 21-7 Riggs Company purchases sails and produces sa boats. It currently produces 1,300 sa boats per year, operating at normal capacity, which is about 80 % of full capacity. Riggs purchases sails at $ 258 each, but the company is considering using allocated using normal capacity. The president of Riggs has come to you for advice. "It would cost me s 265.9B to make the sails" she says, "but only s 258 to buy them, Should I continue buying them, or have I missed something? xcess capacity to manufacture the sails instead. The manufacturing cost per sail would be s 92.61 for direct materials, 83.37 for direct labor, and 90 for overhead. The 3 90 overhead includes s 76,500 of annual fixed overhead tha Prepare a per unit analysis of the differential costs. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Salls Buy Salls Direct material Direct labor variable overhead Purchase price Total unit cost Should Riggs make or buy the salls? Riggs should the sails Exercise 21-7 Riggs Company purchases sails and produces sa boats. It currently produces 1,300 sa boats per year, operating at normal capacity, which is about 80 % of full capacity. Riggs purchases sails at $ 258 each, but the company is considering using allocated using normal capacity. The president of Riggs has come to you for advice. "It would cost me s 265.9B to make the sails" she says, "but only s 258 to buy them, Should I continue buying them, or have I missed something? xcess capacity to manufacture the sails instead. The manufacturing cost per sail would be s 92.61 for direct materials, 83.37 for direct labor, and 90 for overhead. The 3 90 overhead includes s 76,500 of annual fixed overhead tha Prepare a per unit analysis of the differential costs. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Salls Buy Salls Direct material Direct labor variable overhead Purchase price Total unit cost Should Riggs make or buy the salls? Riggs should the sails