Question 1 of 2 > -/17 Carla Vista 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 54% 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 26,000 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.30 per unit. If Carla Vista accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $46,700 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 e.g.-45 or parentheses eg. (45).) Make Buy Net Income Increase (Decrease) Direct materials $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost $ $ $ (b) Should Carla Vista buy the finials? Carla Vista should the finials 2 Question 1 of 2 > ./17 Wir sis for the decision to make or buy the trial Enter negative amounts using either a negative sign preceding the 45 or parentheses (45 Make Buy Net Income Increase (Decrease) 5 5 $ Direct labore Variable overhead costs Famatecturing costs Purchase price Total anual cost 5 $ $ Should Carla Vista by the finals? Carla Vista should - the fintats. Would your answer be different in if the productive capacity released by not making the finials could be used to produce income of $49.7002 income would & bys Attempts: O of 2 used