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need help to solve Wildhorse Company purchases sails and produces sailboats. It currently produces 1,290 sailboats per year, operating at normal capacity, which is about

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Wildhorse Company purchases sails and produces sailboats. It currently produces 1,290 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Wildhorse purchases sails at $253 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $92 for direct materials, $86 for direct labor, and $90 for overhead. The $90 overhead is based on $78.690 of annual fixed overhead that is allocated using normal capacity. The president of Wildhorse has come to you for advice. "It would cost me $268 to make the sails," she says. "but only $253 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 e.g. (45).) Net Income Make Sails Buy Sails Increase (Decrease) Direct material $ $ $ Direct labor Variable overhead Purchase price Total unit cost $ Should Wildhorse make or buy the sails? Wildhorse should the sails. eTextbook and Media If Wildhorse suddenly finds an opportunity to rent out the unused capacity of its factory for $93,000 per year, would your answer to part (e) change? . This is because the net income will bys

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