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(b)15 Should Pharoah Ranch buy the finials? , Pharoah Ranch should the...

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Accounting

(b)15
Should Pharoah Ranch buy the finials?
, Pharoah Ranch should 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 $34,800? Prepare the incremental analysis to show the result.
\table[[,Make,Buy,\table[[Net Income],[Increase],[(Decrease)]]],[Total annual cost,$,$,$
Make
Buy
Increase (Decrease)
Direct materials
$
s
$
Direct labor
Variable overhead costs
Fixed manufacturing costs
Purchase price
Total annual cost
\table[[392,045]]
\table[[421,760],[]]
s
(b)
Should Pharoah Ranch buy the finials?
Pharoah Ranch should 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 $34,800? Prepare the incremental analysis to show the result.

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