Your answer is partially correct. Pottery Ranch 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 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.78 and $4.96, respectively. Normal production is 34,300 curtain rods per year. A supplier offers to make a pair of finials at a price of $13,05 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,700 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare an incremental analysis to decide if Pottery Ranch should buy the finals. (Round answers to decimal places, eg. 1250. Enter negative amounts using elther a negative sign preceding the number eg.-45 or parentheses eg. (45)) Net Income Increase (Decrease) Make Buy Direct materials 172.746 $ i $ 172.746 Direct labor 226,672 i 226,672 Make Buy Increase (Decrease) Direct materials 172,746 172,746 Direct labor 226,672 226,672 Variable overhead costs Fixed manufacturing 249,604 149,604 0 0 0 costs Purchase price 596,385 -596,385 Total annual cost $ 549,002 $ 596,385 $ -47,383 (b) Should Pottery Ranch buy the finials? No .Pottery Ranch should not buy the finials. Purchase price 596,385 -596,385 Total annual cost 549,002 596,385 -47,383 (b) Should Pottery Ranch buy the finials? No Pottery Ranch should not buy the finials. (c) Would your answer be different in (b) If the productive capacity released by not making the finials could be used to produce income of $44,0492 Yes income would increase ~ by $ 21,546 e Textbook and Media