PELU I JUMUI wh.5 (LO 3), AN Ping Pottery has been manufacturing its own finials for its curtain rod

PELU I JUMUI wh.5 (LO 3), AN Ping Pottery has been manufacturing its own finials for its curtain rods. The compan Jurrently operating at 100% of capacity, and variable manufacturing overhead is charged to produc at the rate of 70% of direct labor cost. The direct materials and direct labor cost per unit to make a par finials are HK$40 and HK$50, respectively. Normal production is 30,000 curtain rods per year. A supplier offers to make a pair of finials at a price of HK$129.50 per unit. If Ping Pottery acco the supplier's offer, all variable manufacturing costs will be eliminated, but the HK$450,000 of manufacturing overhead currently being charged to the finials will have to be absorbed by other proces ake a pair of 0,000 of fixed ther products. Instructions 2. Prepare the incremental analysis for the decision to make or buy the finials. b. Should Ping Pottery buy the finials? Jould your answer be different in (b) if the productive capacity released by not making the could be used to produce income of HK$200,000? iking the finials