Pharoah Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows. Direct materials Direct labor $168 70 Variable overhead (70% of direct labor) 49 Fixed overhead (30% of direct labor) 21 Manufacturing cost per unit $308 The unassembled bikes are sold to retailers at $486 each. Pharoah has unused productive capacity that is expected to continue indefinitely; management has concluded that some of this capacity could be used to assemble the bikes and sell them at $533 each. Assembling the bikes will increase direct materials by $5 per bike and direct labor by $10 per bike. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the bikes. (a) Prepare an incremental analysis for the sell-or-process further decision. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts) Sell Process Further Net Income Increase (Decrease) Prepare an incremental analysis for the sell-or-process-further decision. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) Save for Later v $ Sell Process Further Net Income Increase (Decrease) $ $ $ Attempts: 0 of 1 used Submit