Riggs 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. Riggs purchases sails at $278 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $97.73 for direct materials, $81.23 for direct labor, and $90 for overhead. The $90 overhead includes $78,200 of annual fixed overhead that is allocated using normal capacity. The president of Riggs has come to you for advice. "It would cost me $268.96 to make the sails she says, "but only $278 to buy them. Should I continue buying them, or have I missed something?" DZ Your answer is partially correct. Try again Prepare a per unit analysis of the differential costs. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e g. (45)) Net Income Make Sails Increase (Decrease) Buy Sails Direct material 120208 (120207.90) (999 12.90) Direct labor 99912.90 32496.60 Variable overhead (32496.60) Purchase price 341940 341940 Total unit cost 252617.40 341940 89322.60