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Flint Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead

Flint 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 69% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.68 and $4.57, respectively. Normal production is 25,400 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.28 per unit. If Flint accepts the suppliers offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products.

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Prepare the incremental analysis for the decision make or buy the finials. (Round answers to O decimal places, e.g. 1250. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials $ $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost $ $ $ LINK TO TEXT VIDEO: APPLIED SKILLS Should Flint buy the finials? : Flint should the finials. LINK TO TEXT VIDEO: APPLIED SKILLS Would your answer be different in previous part if the productive capacity released by not making the finials could be used to produce income of $55,468? Income would by $

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