Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at $100\%$ of capacity,

and variable manufacturing overhead is charged to production at the rate of $63\%$ of direct labor cost. The direct materials and direct

labor cost per unit to make a pair of finials are $$4$ and $$5,$ respectively. Normal production is $32,100$ curtain rods per year.

A supplier offers to make a pair of finials at a price of $$13\mathrm{.}35$ per unit. If Pottery Ranch accepts the supplier's offer, all variable

manufacturing costs will be eliminated, but the $$49,400$ of fixed manufacturing overhead currently being charged to the finials will

have to be absorbed by other products.

$($a$)$

Prepare the incremental analysis for the decision to make or buy the finials. $($Enter negative amounts using either a negative sign preceding

the number eg$.-45$ or parentheses eg$.(45).)$

$($b$)$

Should Pottery Ranch buy the finials?

$,$ Pottery Ranch should

the finials.

$($c$)$

Would your answer be different in $($b$)$ if the productive capacity released by not making the finials could be used to produce income of

$$44,920?$

by $