Prepare an incremental analysis-pottery ranch


Discuss the below in detail:

Q: Prepare an incremental analysis to decide if Pottery Ranch should buy the finials.

Net Income

Make Increase (Decrease)

Buy Direct materials

Direct labor variable overhead costs

Fixed manufacturing costs

Purchase price Total annual cost

(a) Should Pottery Ranch buy the finials? Pottery Ranch should he finials

(b) Would your answer be different in

(c) If the productive capacity released by not making the finials could be used to produce income of $76,614?

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Accounting Basics: Prepare an incremental analysis-pottery ranch
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