I Have a question I need an answer ASAP:

Riggs Company purchases sails and produces sailboats. It currently produces 1,240 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $265 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $90.89 for direct materials, $85.48 for direct labor, and $90 for overhead. The $90 overhead includes $78,000 of annual fixed overhead that is allocated using normal capacity.

The president of Riggs has come to you for advice. "It would cost me $266.37 to make the sails," she says, "but only $265 to buy them. Should I continue buying them, or have I missed something?

Prepare analysis of the differential costs.

Should Riggs make or buy the sails?

If Riggs suddenly finds an opportunity to rent out the unused capacity of its factory for $77,800 per year, would your answer to part (a) change?

yes or no ?This is because the net income will increase/decease by how much (need how much the net income will increase please)?