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need help with question a) asap, pls put correct workings Whispering Winds Inc. has been manufacturing its own shades for its table lamps. The company

need help with question a) asap, pls put correct workings

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Whispering Winds Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 50% ofdirect labou r costs. The direct materials and direct labour costs per unit to make the lampshades are $4.70 and $5.60, respectively. Normal production is 48,300 table lamps per year. Asupplier offers to make the lampshades at a price of$13.50 per unit. IfWhispering 'Winds Inc. accepts the supplier's offer, all variable manufactu ring costs will be eliminated, but the $41,300 of xed manufacturing overhead currently being charged to the lampshades will have to be absorbed by other products. (a) Your answer is partially correct. Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to O decimal If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesi While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this pr Number of units: 48,800 Make Buy Direct materials 194110 $ 0 Direct labour 231280 0 Variable manufacturing overhead 115640 0 Fixed manufacturing overhead 41300 41300 Purchase price 0 557550 Total annual cost 582330 598850Net Income Increase (Decrease) 194110 231280 115640 -557550 -16520

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