please answer all the parts.

FGHIJKLMN 1 E7-5 Use incremental analysis for make-or-buy decision 2 Pottery Ranch Inc. has been manufacturing its own fnials for its curtain rods. The company is currently operating at 100% of capacity, and 3 variable manufacturing is charged to production at the rate of 70% of direct labor cost. The direct materials and the direct labor cost 4 per unit to make a pair of finials are $4 and $5, respectively. Normal production is 30,000 curtain rods per year. 5 A supplier offers to make a pair of finials at a price of $12.95 per unit. If Pottery Ranch accepts the supplier's offer, al variable manufacturing 6 costs will be eliminated, but the $45,000 of fixed manufacturing overhead currently being charged to the fnials will have to be absorbed by 7 other products. 9 Instructions 10(a) Prepare the incremental analysis for the decision to make or buy the finals. 11 (6) Should Pottery Ranch buy the finials? 12(c) Would your answer be different in (b) if the productive capacity released by not making the fnials could be used to produce income 13 of $20,000 14 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" 7(a) Prepare the incremental analysis for the decision to make or buy the finials Net Income Make Buy Increase Decrease) Direct materials Value Value Direct labor Valle Value Variable overhead costs Value Value Fored manufacturing costs Value Purchase price Total annual costs Value 27 (b) Should Pottery Ranch buy the finials? 87.5 17.8 | 07.10 7.117:15 Ready b) Should Pottery Ranch buy the finials ? (c) Would your answer be different in (b) if the productive capacity released by not making the fnials could be used to produce income of $20,000. Make Buy Net income Increase (Decrease) Value Value Value Total annual cost (above) Opportunity cost Total cost Value Value 531. 54 Assume that the direct materials and direct labor cost per unit to make the finials are $4.75 and $5.50, respectively. What impact do these changes on your analysis and the decision to make-or-buy the finials? 55 17.5 78 790 7- 1 715