FINANCIAL & MANAGERIAL (ACC 110 PM / Remaining: 117 min. CALCULATOR STANDARD VIEW PRINTER VERSION BACK N exercise 188 Ruhn Bicycle Company has been manufacturing its own seats for its bicycles. The company is currently operating at 100% capacity, and variable manufacturing overhead Charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respective Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats at a price of $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products. Prepare the incremental analysis for the decision to make or buy the bicycle seats. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter for the amounts.) Make Buy Net Income Increase (Decrease) Should Kuhn Bicycle Company buy the seats from the outside supplier? The seats purchased from the outside supplier Click if you would like