Exercise 7-5 Pottery Ranch nc. has been manufacturing its own finials or its curtain rods. The company s current operating at 100% o capacit and vana e manufacturing overhead s charged to production at the rate of 57% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.81 and $4.54, respectively. Normal production is 35,000 curtain rods per year A supplier offers to make a pair of finials at a price of $12.79 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,700 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. beg charged to the fanal ilt o be ab oved By dt odeaie eiminated, but he Prepare an incremental analysis to decide if Pottery Ranch should buy the finials. (Round answers to 0 decimal places, negative sign preceding the number e.g. -45 or parentheses e.g. (45).) e.g 1250. Enter negative amounts using either a Net Income Increase (Decrease) Make Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost