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Buzke Company produces chairs. This year's expected production is 25,000 units. Currently. Burke has roceived an ofler from an outside vendor to supply the upholstery

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Buzke Company produces chairs. This year's expected production is 25,000 units. Currently. Burke has roceived an ofler from an outside vendor to supply the upholstery for the o makes the upholstefy for the chairs in its factory, Burke's management accountant reports chairs Burke requires at $8.00 per chair Requirements 1. Assume that if the outside vendor supplies the upholstory, the tacilty where the upholstery is currently made wi. remain idle. On the basis of financial considerations alone, should Burke accept the outside vendor's offer at the anticipated volume of 25,000 chairs? Show your calculations 2. For this question, assume that if the upholstery is purchased outside, the avalible unused facilfes will be used to make pillows to match the chairs. Each pillow sells for $37 with a variable cost of $31. No other costs would change and the company expects to sel 10,000 pilows. On the basis of financial considerations alone, should Burke make or buy the upholstery for their chairs, assuming that 25,000 chairs are produced (and sold)? Show your calculations. 3. The sales manager at Burke is concemed that the estimale of 25,000 chairs may be high and believes that only 19,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make 10,000 pillows whether Burke buys the upholstery or makes it in house. On the basis of financia! considerations alone, should Burke purchase the upholstery from the outside vendor? Show your calculations. Data table Requirement 1. Assume that if the outside vendor supples the upholsteny, the faclty where the upholstery is currently made wil remain idle. On the basis of financial considerations alone, should Burke accept the outside vendor's ofler at the anticipated volume of 25,000 chairs? Show your calculations. (ff an inpul fiald is not used in the table, loave the input field emply; do not anter ats 3 ato.) Total relovant costs

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