Question 4 of 4 1.09/3 TII VW Polde Show Altsot History Current Attempt in Progress Sheridan Company purchases sails and produces sailboats. It currently produces 1.230 sailboats per year, operating at normal capacity, which is about 80% of full capacity Sheridan purchases sails at $258 cach, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sal would be $98 for direct materials. $81 for direct labor, and 590 for overhead. The 590 overhead based on $78,720 of annual fixed overhead that is allocated using normal capacity The president of Sheridan has come to you for advice it would cost me $269 to make the she says but only $258 to buy them. Should I continue buying them or have missed something? Your answer is partially correct Prepare a per unit analysis of the differential costs. (Enter negative amounts using either a notive preceding the number 45 or porentheses es. (451) Make Sails Buy Sails Net Income Increase Decrease) Direct material $ 5 Direct labor Variable overhead Purchase price Total unitost $ $ She Sherido make or buy the sal Should Sheridan make or buy the sails? Sheridan should the all eTextbook and Media Your answer is partially correct it Sheridan suddenly finds an opportunity to rent out the nosed capacity of its factory for $97.200 per year would your answer to part a change? ty Y TIEDE This is because the net income will eTextbook and Media