please help with part b

Oriole Company purchases sails and produces saliboats, It currently produces 1,200 sallboats per year, operating at normal capacity, which is about 80 of full capacity. Oriole purchases sails at $251 each, but the compary is considering using the excess capacity to manufacture the sails instead. The mamufacturing cost per sail would be $98 for direct materials, $80 for direct labor, and $90 for overhead. The $90 overhead is based on $78,000 of annual fuxed overhead that is allocated using normal capacity The president of Oriole has come to you for advice. "It would cost me $268 to make the sails." she says, "but only $251 to buy them. Should I continue buying them, or have I missed something?" Should Oriole make or buy the sails? If Oriole suddenly finds an opportunity to rent out the unused capacity of its factory for $77,800 per year, would your answer to part (a) change? - This is because the net income will eTextbook and Media