Question 3 Pottery Ranch Inc. has been manufactuning its own finials for its curtain ruds. The company is currently operating at 100% of capacity, and vanable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of inials are $3.96 and $4.89, respectively. Normal production is 32,300 curtain rods per year supplier ofteto make a pair of finials at a price of $12.89 per unit. f Pottery Ranch accepts the supplier's cfter, all variable manufacturing costs will be eliminated, but the $46,500 of fixed manufacturing averhead currently being charged to the finias will have to be absorbed by ather products. Prepare an incremental analysis to decide if Pottery Ranch shoud buy the finials, (Roumd answers to 0 decimal places, e-g. 1250. Enter negative amounts using either a negative sign preceding the nuniber e.g.45 or parentheses e.g. (45).) Buy Decrease) Direct materials Veriable overheed costs Fixed manufacturing costs Purchase price Total annual cost Should Pottery Ranch buy the finials? Pottery Ranch should the finias Would your answer be different in (b) if the proouctive capacity released by not making the finials could be used to produce income of $42,044? , income would by $ Question Attempts: 0 of 2 used SAVE FOR LATERSUBMIT