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pls fill out correctly Crane Bicycle Company manufactures its own seats for its bicycles. The company is currently operating at 100% capacity. Variable manufacturing overhead
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Crane Bicycle Company manufactures its own seats for its bicycles. The company is currently operating at 100% capacity. Variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8 and $9, respectively. Normal production is 63,000 bicycles per year. A supplier offers to make the bicycle seats at a price of $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $37,800 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be 1 absorbed by other products (a) Prepare the incremental analysis for the decision to make or buy the bicycle seats. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (45). Do not leave any field blank. Enter for the amounts.) o a Make Buy Net Income Increase (Decrease) $ $
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