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I NTER Awr ffers to make of in have to be bored by other products 13.30 Pottery Ranch the w e ll a ndring the 46.700 offe r t


www. mal productions 2,000 cro re Apper offer to make a profe $13.30 Pottery and the w ere allemand will be Prepare an increm


Eugen wieplus.com - T o uncentens Pottery Ranch Inc. has been manufacturing its own inials for its curtain rods. The company


pereincrementa t o decidery the
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Answer #1
Incremental Analysis
Make Buy Net Income Increase
Direct Material        101,920                        101,920
Direct Labor        120,640                        120,640
Variable overhead costs           65,146                          65,146
Fixed manufacturing costs           46,700           46,700                                   -  
Purchase price        345,800                      (345,800)
Total annual cost        334,406        392,500                        (58,094)
No, should not buy finials
Yes, income would increase by 66,194-58,094 = $8,100
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