Ivanhoe Bicycle Company manufactures its own seats for its bicycles. The company is currently operating at 100% capacity. Variable manufacturing overhead is 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 and $9. respectively. Normal production is 54,000 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 $32,400 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products, (a) 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 eg-45 or parentheseses (45). Do not leave any field blank Enter for the amounts.) Net Income Increase (Decrease) Make Buy Direct Material $ Direct Labor Variable Manufacturing Costs Fixed Manufacturing Costs MacBook Air 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 eg.-45 or parentheses eg. (45). Do not leave any field blank Enter for the amounts.) Make Buy Net Income Increase (Decrease) Direct Material Direct Labor Variable Manufacturing Costs Fixed Manufacturing Costs Purchase Price Total annual cost $ Save for Later Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above, MacBook Air