Exercise 23-05 Pina Colada Inc. has been manufacturing its o n tiniais tor its curtain rods. The company s arrently operating at 100% or capacity, and variable manufacturing overhead is charged to production at the rate or 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 28,400 curtain rods per year A supplier offers to make a pair of finials at a price of $13.35 per unit. If Pina Colada accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,900 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. o make or buy the fir als Prepare the incremental analysis or the decision Enter negative an ounts i sing either a negative s n preceding the n 45 or parentheses e 45 m reg. Net Income Make Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost Should Pina Colada buy the finials? Pina Colada should the finials. Would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $36,920? , income would by $ Click if you would like to Show Work for this question: Open Show Work