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pls help Sunland Company purchases sails and produces sailboats. It currently produces 1,280 sailboats per year, operating at normal capacity. which is about 80% of
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Sunland Company purchases sails and produces sailboats. It currently produces 1,280 sailboats per year, operating at normal capacity. which is about 80% of full capacity. Sunland purchases sails at $255 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $97 for direct materials, $87 for direct iabor, and $90 for fotal manufacturing overhead. The $90 total manufacturing overhead includes $78,080 of annual fixed overhead that is allocated using normal capacity. The president of Sunland has come to you for advice. "It would cost me $274 to make the sails, she says, "but only $255 to buy them. Should I continue buying them, or have I missed something? (a) Prepare a per unit analysis of the differential costs. (Enter negotive amounts using elther a negative sign preceding the number eg -45 or parentheseses. (45).) Should Sunland make or buy the sails Step by Step Solution
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