Old Camp Company manufactures awnings for its own line of tents. The company is currently...

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Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 13,000 awnings it needs for $27 each. Old Camp's costs to make the owning are $14 In direct materials and $7 in direct labor. Variable manufacturing overhead is 80 percent of direct labor. If Old Camp accepts the offer $44,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines. Required: 1. Complete the incremental analysis for the decision to make or buy the awnings in the table provided below. 2. Should Old Camp continue to manufacture the awnings or should they purchase the awnings from the supplier? 3. Assuming that the capacity released by purchasing the awnings allowed Old Camp to record a profit of $22,000, should Old Camp continue to manufacture or purchase the awnings? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 1 Complete mental analysis for the decision to make or buy the awnings in the table provided below. Net Income Make Buy Increase (Decrease) Direct Materials $ 182,000 Direct Labor 91,000 Variable OH 72,800 Food OH Purchase Price Total Required 2 > Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 13,000 awnings it needs for $27 each Old Camp's costs to make the awning are $14 in direct materials and $7 in direct labor. Variable manufacturing overhead is 80 percent of direct labor. If Old Camp accepts the offer, $44,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines. Required: 1. Complete the incremental analysis for the decision to make or buy the awnings in the table provided below. 2. Should Old Camp continue to manufacture the awnings or should they purchase the awnings from the supplier? 3. Assuming that the capacity released by purchasing the awnings allowed Old Camp to record a profit of $22,000, should Old Camp continue to manufacture or purchase the awnings? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should Old Camp continue to manufacture the awnings or should they purchase the awnings from the supplier? Manufacture O Purchase Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 13,000 awnings it needs for $27 each Old Camp's costs to make the awning are $14 in direct materials and $7 in direct labor. Variable manufacturing overhead Is 80 percent of direct labor, If Old Camp accepts the offer, $44,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines. Required: 1. Complete the incremental analysis for the decision to make or buy the awnings in the table provided below. 2. Should Old Camp continue to manufacture the awnings or should they purchase the awnings from the supplier? 3. Assuming that the capacity released by purchasing the awnings allowed Old Comp to record a profit of $22,000, should Old Camp continue to manufacture or purchase the awnings? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming that the capacity released by purchasing the awnings allowed Old Camp to record a profit of $22,000, should Old Camp continue to manufacture or purchase the awnings? O Manufacture O Purchase ROTO

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