LEARNING CASE: AFIYA BIKES Afiya Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows. Direct materials Direct labor Variable overhead (70% of direct labor) Fixed overhead (30% of direct labor) Manufacturing cost per unit RM150 70 49 21 RM290 The unassembled bikes are sold to retailers at RM450 each. Afiya currently has unused productive capacity that is expected to continue indefinitely: management has concluded that some of this capacity can be used to assemble the bikes and sell them at RM495 each. Assembling the bikes will increase direct materials by RM5 per bike, and direct labor by RM10 per bike. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the bikes. Instructions (a) Prepare an incremental analysis for the sell-or-process-further decision. (b) Should Afiya sell or process further? Why or why not