Question 4 View Policies 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 salls at $250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $98 for direct materials, $81 for direct labor, and $90 for overhead. The $90 overhead is 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 sails," she says, "but only $258 to buy them. Should I continue buying them, or have I missed something?" Prepare a per unit analysis of the differential costs. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses es. (451) Net Income Increase (Decrease) Make Sails Buy Sails Direct material Direct labor Variable overhead Purchase price Total unit cost Purchase price Total unit cost Should Sheridan make or buy the sails? Sheridan should the sails. e Textbook and Media If Sheridan suddenly finds an opportunity to rent out the unused capacity of its factory for $97,200 per year, would your answer to part (al charge? 0. This is because the net income will by $ e Textbook and Media Attempts: unlimited Submit Answer Save for later