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Pattery Crane Inc. has been manufacturing its own brisis for its curtain rods. The company is currently operating at 100% of and variable manufacturing overhead

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Pattery Crane Inc. has been manufacturing its own brisis for its curtain rods. The company is currently operating at 100% of and variable manufacturing overhead to changed to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair offrials are $4 and 55. respectively. Normal production is 33.300 contro per year A supplier offers to make a pair of lasata price of $12.90 per unit. If Pottery Crane accepts ther's fall variante marutacturing coyts will be eliminated, but the $49.200 ot fixed manufacturing overhead currently being charged to the fries will have to be absorbed by other products a) Prepare the incremental analysis for the decrion to make or buy the beats Enter reative amounts using either o negative sin preceding the numbers. -45 or parentheses es. (450 Make Netcome Increase Decreased BUY Direct materials $ 5 Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total anualcos Purchase price Total annual cost $ (b) Should Pottery Crane buy the finials? Pottery Crane should the finals (c) Would your answer be different in (b) if the productive capacity released by not making the finals could be used to produce Income of $35.1057 Income would tys e Textbook and Media

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