Ivanhoe Company purchases sails and produces sailboats. It currently produces 1,270 sailboats per year, operating at normal capacity. which is about 80% of full capacity. Ivanhoe purchases sails at $ 262 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 97 for direct materials, $88 for direct labor, and $ 90 for total manufacturing overhead. The $ 90 total manufacturing overhead includes $78,740 of annual fixed overhead that is allocated using normal capacity The president of Ivanhoe has come to you for advice. "It would cost me $ 275 to make the sails, she says, "but only $ 262 to buy them. Should I continue buying them, or have I missed something?" Prepare a per unit analysis of the differential costs. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses es. (451 Net Income Increase (Decrease) Make Sails Buy Sails Direct material $ S $ Direct labor T Variable overhead Purchase price Total unit cost $ $ $ Should Ivanhoe make or buy the sails? Ivanhoe should the sails. e Textbook and Media If Ivanhoe suddenly finds an opportunity to rent out the unused capacity of its factory for $77,000 per year, would your answer to part (a) change? This is because the net income will by $