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i need help on part b Current Designs faces a number of important decisions that require incremental analysis. One of Current Designs' competitive advantages is
i need help on part b
Current Designs faces a number of important decisions that require incremental analysis. One of Current Designs' competitive advantages is found in the ingenuity of its owner and CEO, Mike Cichanowski. His irwolvement in the design of kayak molds and production techniques has led to Current Designs being recognized as an industry leader in the design and production of kayaks. This ingenulty was evident in an improved design of one of the most important components of akayak, the seat. The "Revolution Seating System" is a one-of-a-kind, rotating axis seat that gives unmatched, full-contact, under-leg suppart, it is quickly adjustable with a lever-lock system that allows for a customizable seat position that maximizes comfort for the rider. Harving just designed the "Revolution Seating System," Current Designs must now decide whether to produce the seats internally or buy them from an outside supplier. The costs for Current Designs to produce the seats are as tollows. Current Designs will need to produce 2.850 seats this year. 28% of the fixed overhead will be avolded if the seats are purchased from an outside vendor. After soliciting prices from outside suppliers, the company determined that it will cost $54 to purchase a seat from an outside vendoc. Vouranswer is correct Prepare an incremental analysis showing whether Current Designs should make or boy the 'Revolution Seating System' (Enter decrease in net income then enter with a negative sign preceding the number or parenthesis, e.g. 15,000 or {{5,000)} Would your answer in (a) change if the productive capacity released by not making the seats could be used to produce income of $19,000 ? (Enter decrease in net income then enter with a negative sign preceding the number or parenthesis, es.-15,000 or (15,000). Current Designs should the Revolution Seating System Step by Step Solution
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