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 $51\%$ 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 $31,700$ curtain rods per year.

A supplier offers to make a pair of finials at a price of $$13\mathrm{.}05$ per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $$46,900$ 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.

$($b$)$ Should pottery ranch buy 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 $$53,850?$