PA7-9 (Algo) Analyzing Make-or-Buy Decision (LO 7-2, 7-4) Old Camp Company manufactures awnings for its own ine of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 13.000 awnings it needs for $30 each Old Camps costs to make the awning are $19 in direct materials and $1 in direct labor Variable manufacturing overhead is 80 percent of direct labor. Wold Camp accepts the offer, 547,000 of fixed manufacturing overhead currently beng charged to the awnings will have to be absorbed by other product lines Required: 1. Complete the incremental analysis for the decision to make or buy the awnings in the table provided below. 2. Should Old Camp continue to manufacture the awnings or should they purchase the awnings from the supplier? 3. Assuming that the capacity released by purchasing the awnings slowed Old Camp to record a profe of 5:22,000, should Old Camp continue to manufacture or purchase the wings? Complete this question by entering your answers in the tabs below. Required 1 Required 2 required Complete the incremental analysis for the decision to make or buy the awnings in the table provided below. Make Buy Net Income Increase Decreata) $ Direct Materials Direct Labor Variable OH Fixed OH Purchase Price Total 221.000 91.000 72.800 300.000