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 65% 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 29.700 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.05 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $43,000 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 e.g. (45).) Direct materials $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Make $ Net Income Buy Increase (Decrease) $ Total annual cost $ $ $ (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 $30,660? .income would by $ The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Grand, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Percent of Total Sales Contribution Margin Ratio Appetizers 15 % 60 % Main entrees 50 % 25 % Desserts 10 % 70 % Beverages 25 % 80 % Paul is considering a variety of options to try to improve the profitability of the restaurant. His goal is to generate a target net income of $120,000. The company has fixed costs of $1,262,250 per year. (a) Your answer is correct. Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income. (Round intermediate calculations to 3 decimal places e.g. 0.251 and final answers to O decimal places, e.g. 2,510.) Total restaurant sales : Sales from Each Product Appetizers $ 427500 Main entrees $ 1425000 Desserts $ 285000 Beverages $ 712500 2850000 2) The old elevator is replaced. Revenues Less costs: Variable costs Fixed costs Selling & administrative Depreciation Operating income Loss on old elevator Net income 9 eTextbook and Media Save for Later $ Replace Old Elevator $ Attempts: 1 of 3 used Submit Answer parts of this question must be completed in order. This part will be available when you complete the part above