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Wildhorse Company purchases sails and produces sailboats, It currently produces 1,250 sailboats per year, operating at normal capacity, which is about 80% of full capacity.

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Wildhorse Company purchases sails and produces sailboats, It currently produces 1,250 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Withorse 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 $94 for direct materials, $81 for direct labor, and $90 for total manufacturing overhead. The $90 total manufacturing overhead includes $78,750 of annual fixed overhead that is allocated using normal capacity. The president of Wildhorse has come to you for advice. "it would cost me $265 to make the sails," she says, "but only $253 to buy them. Should I continue buying them, or have I missed something? (a) Prepare a per unit analysis of the differential costs. (Enter negathe amounts using either a negative sign preceding the number es: -45 or parentheseses (45).) Should Wildhorse make or buy the sails? Attempts: 0 of 7 used (b) The parts of this question must be completed in order This part will be avallable when you complete the part above

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