Splish Brothers Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 50% of direct labor cost. The direct materi and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 25,000 curtain rods per year. A supplier offers to make a pair of finials at a price of $12.75 per unit. If Splish Brothers accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,000 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Direct materials Direct labore Variable overhead costs Ficed manufacturing costs Purchase price Total annual cost (b) Should Splish Brothers buy the finals? Splish Brothers should Would your ansvar be different in of 535,7502 the productive capacity released by not making the could be used to produce income