Riggs Company purchases sails and produces sallboats. It currently produces 1,200 sailboats per year, operating at normal capacity which is about 80% of full capacity, Riggs purchases sails at $253 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $99.21 for direct materials, $84.58 for direct labor, and $90 for overhead. The $90 overhead includes $78,100 of annual fixed overhead that is allocated using normal capacity. The president of Riggs has come to you for advice. "It would cost me $273.79 to make the sails," she says, "but only $253 to buy them. Should I continue buying them, or have I missed something?" 10 Study Prepare a per unit analysis of the differential costs. (Round answers to 2 decimal places, e.g. 15.75. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Sails Buy Sails Direct material Direct labor Variable overhead Purchase price $I Total unit cost Should Riggs make or buy the salls? Riggs should the sails. Variable overhead Purchase price Total unit cost Should Riggs make or buy the sails? Riggs should : the sails. LINK TO TEX VIDEO SIMILAR EXERCISE VIDEO APPLIED SKILLS If Riggs suddenly finds an opportunity to rent out the unused capacity of its factory for $77,900 per year, would your answer to pa (a) change? ". This is because the net income will I by $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO SIMILAR EXERCISE VIDEO: APPLIED SKILLS