Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is aurrently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 56% 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 25,800 curtain rods per year. A supplier offers to make a pair of Finlats at a price of $13.30 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,100 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. a Pal A suppler ones to (a) Prepare the incremental analysis for the decision to make or buy the finals. (Enter negative amounts using either a negative in preceding the Net Income Increase (Decrease) Make Buy Direct materials S Direct Labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost (b) Should Pottery Ranch buy the finals? the finals. h Pottery Ranch should Would your answer be differunt in (b) of the productive capacity related by not making the finals could be used to produce income of $14.500? income would by s MWE