Kuhn Bicycle Company. Please answer these clearly and show step-by-step in how you get the answer.

Problem #68 points Kuhn Bicycle Com Make or Buy pany has been manufacturing its own seats for its bicycles. The capacity, and variable manufacturing overhead is charged to production at the rate company is currently at 100% t labor cost. The direct materials and direct labor cost per unit to make the bicycle seats 9.00, of60% ofdirect are $8.00 and $ respectively. Normal production is 50,000 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 overhead currently being charged to the bicycle seats will have to be absorbed by other products. Instructions manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing (a) Prepare the incremental analysis for the decision to make or buy the bicycle seats. n Bicycle Company buy the seats from the outside supplier? Justify your