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 54 and 55, respectively. Normal production is 26.400 curtain rods per year. Asupplier offers to make a pair of finials at a price of $13.45 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,400 of foxed manufacturing overhead currently being charged to the finials will have to be absorbed by other products a (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 es-45 or parentheseses (451) Make Buy Net Income Increase (Decrease) Direct materials $ 105600 $ s Direct labor 132000 Variable overhead costs 80520 Flyed manufacturing costs 40400 40400 Purchase price 355000 Total annual cost 358520 195680 S bl Should Pottery Ranch buy the finals! Pottery Ranch should not by the finals id Would your answer be different in (Dithe productive capacity released by noe making the finals could be used to produce income of $43.9600 Income would bys 7000