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a. Prepare a per unit analysis of the differential costs. Briefly explain whether Riggs should make or buy the sails. b. If Riggs suddenly finds an opportunity to rent out the unused capacity of its factory for $77,000 per year, would your answer to part (a) change? Briefly explain. E7-11 Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value at Sales Value of Split-Off Point Process Further Processed Allocated Joint Costs Cost to Product Spock $300,000 $210,000 $40,000 $110,000 Uhura 400,000 300,000 60,000 85