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 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.56 and $4.75, respectively. Normal production is 29,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.46 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products (a) Prepare an incremental analysis to decide if Pottery Ranch should buy the finials. (Round answers to 0 decimal places, e.g. 1250. Enter negative amounts using either a negative sign preceding the mumber e.g.-45 or parentheses eg. (45).) Net Income Make Buy Increase (Decrease) Direct materials 103596 103596 Direct labor 138225 138225 Variable overhead costs 84317 84317 Fixed manufacturing costs 40400 40400 Purchase price 391686 326128 366538 Total annual ocost 432086 65548 (b)