> Open Assignment MESSAGE HY INSTRUCTOR FULL SCRE T RESOURCES Exercise 7-5 Pottery Ranch Inc. has been manufacturing its own finials forit charged to product on at the rate of 61% of direct labor cost. The drect materials and drect labor cost per unit to make a par o finials are Normal production is 32,300 curtain rods per year. 7-2 g its own finals for its artar, rods. The company is currenty operating at 100% of capac ty, and s curtain rods. Th 7-3 7-11 hmission) A supplier offers to make a pair of finials at a price of $12.89 per unit. If Pot $46,500 of fixed manufacturing overhead currently being cha ttery Ranch accepts the supplier's offer, all variable manufacturing rged to the finials will have to be absorbed by other products. 7-24 Prepare an incremental analysis to decide if Pottery Ranch should buy the finials. (Round answers to o decimal places, e.g. 1250. Enter n negative sign preceding the number eg. -45 or parentheses e.o. (45).) Net Income Make core Buy (Decrease) Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost biective Al Rights Reserved. A Division of 2ohn Wiey& Sc Ins Ask me anything