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 57% 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 25,500 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.25 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,400 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 e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials $ $ 0 $ 120,000 120,000 150000 Direct labor 150000 Variable overhead costs 105000 105000 Fixed manufacturing costs 45000 45000 Purchase price 388500 -388500 Total annual cost 420000 433500 -13500