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Current Designs faces a number of important decisions that require incremental analysis.

One of Current Designs' competitive advantages is found in the ingenuity of its owner and CEO, William Brown. His involvement in

the design of kayak moulds and production techniques has led to Current Designs being recognized as an industry leader in the design

and production of kayaks. This ingenuity was evident in an improved design of one of the most important components of a kayak, the

seat. The "Revolution Seating System" is a one$-$of$-$a$-$kind, rotating axis seat that gives unmatched, full$-$contact, under$-$leg support. It is

quickly adjustable with a lever$-$lock system that allows for a customizable seat position that maximizes comfort for the rider.

Having just designed the Revolution Seating System, Current Designs must now decide whether to produce the seats internally or buy

them from an outside supplier. The costs for Current Designs to produce the seats are as follows.

Current Designs will need to produce $3,050$ seats this year; $20\%$ of the fixed overhead will be avoided if the seats are purchased from

an outside vendor. After soliciting prices from outside suppliers, the company determined that it will cost $$52$ to purchase a seat from

an outside vendor.

$($a$)$ Prepare an incremental analysis showing whether Current Designs should make or buy the Revolution Seating System. $($If an

amount reduces the net income then enter with a negative sign preceding the number or parenthesis, eg $-15,000,(15,000).$ While

altemate approaches are possible, irrelevant foxed costs should be included in both options when solving this problem.$)$

Current Designs should

the Revolution Seating System.

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