Cullumber Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Cullumber 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 for direct materials, $85 for direct labor, and $90 for overhead. The $90 overhead is based on $78,000 of annual fixed overhead that is allocated using normal capacity. The president of Cullumber has come to you for advice. "It would cost me $274 to make the sails," she says, "but only $253 to buy them. Should I continue buying them, or have I missed something?" - Your answer is partially correct. Prepare a per unit anal or parentheses e.g. (45).) of the differential cos Ente egative amounts using either a negative sign preceding the number e.g. -45 Net Income Increase (Decrease) Make Sails Buy Sails Direct material $ Direct labor Variable overhead DOICI DOTTI TODOI Purchase price Total unit cost Should Cullumber make or buy the sails? Cullumber should make the sails. Your answer is partially correct. If Cullumber suddenly finds an opportunity to rent out the unused capacity of its factory for $67,900 per year, would your answer to part (a) change? Yes V This is because the net income will Increase by $