Exercise 23-05 Blue Spruce Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finals are 4 and 55, respectively. Normal production is 32,300 curtain rods per year. A supplier offers to make a pair of finals at a price of $12.90 per unit. If Blue Spruce accepes the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,500 of fixed manufacturing overhead currently being charged to the finals will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finals (Enter negative amounts using either a negative sin preceding the number e.g. -45 or parentheses e (45) Net Income Buy Increase (Decrease) Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost Should Blue Spruce buy the finis? 9. Bue Spruce should the finals (c) Would your answer be different in (b) if the productive capacity released by not making the finals could be used to produce income of $35,3557 by income would Click if you would like to Show Work for this questioni Qen Show Work