LILULATOR PRINTER VERSION BACK NE Current Designs 7-1 (Part 3) (Part Level Submission) 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 Clchanowski. His Involvement 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 ingenuity was evident in an improved design of one of the most important components of a kayak, the seat. The "Revolution Seating System" is a one-of-a-kind, rotating axis sent that gives unmatched, full-contact, under-leg support. It is quickly adjustable with a lever-lock system that allows for 3 customizable seat position that maximizes comfort for the rider Having 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 follows Direct materials $22 /unit $14 /unit Variable overhead $12/unit Fixed overhead Direct labor $20,000 Current Designs will need to produce 3,150 seats this year, 22% of the fixed overhead will be avoided if the seara purchased from an outside vendor. After soliciting prices from outside suppliers, the company determined that it will cost $52 to purchase a seat from an outside vendor ZYour answer has been saved and sent for grading. See Gradebook for score detail Prepare an incremental analysis showing whether Current Designs should make or buy the Seat (Enter decrease in net income then enter with a negative some preceding the BRA DAN TV Your answer has been saved and sent for grading, See Gradebook for score details. Prepare an incremental analysis showing whether Current Designs should make or buy the "Revolution Seating System. (Enter decrease in net income then enter with a negative sign preceding the number or parenthesis, og -15,000 or (15,000).) Net Income Increase (Decrease) Make Buy 0.00 69300.00 69300.00 Direct Materials 0.00 44100.00 44100.00 Direct Labor 0.00 37500.00 37800.00 15600.00 Variable Manufacturing Costs Fixed Manufacturing Costs 20000.00 163800.00 0.00 Purchase Price 100.00 171200.00 Total Annual Cost the Revolution Seating System Current Designs should make Click if you would like CALCULATOR PRINTER VERSION