Ch20 Q9/12

Question 9 of 12 View Policies Current Attempt in Progress Carla Vista Furniture currently manufactures rocking chairs as its main product. Each chair uses one seat cushion and one back cushion with the following costs per set of cushions (one seat and one back): Direct materials Direct labor Variable overhead Fixed overhead Total $4 Carla Vista should 13 8 Save for Later 11 $36 Shepert Company has contacted Carla Vista with an offer to sell it 4,800 sets of cushions for $30 each. If Carla Vista buys the cushions, $5 of the fixed overhead per unit will be allocated to other products. Should Carla Vista make or buy the cushions? eTextbook and Media to save $ -/2 = : per set. Attempts: 0 of 6 used Submit Answer

Carla Vista Furniture currently manufactures rocking chalis as its main product. Each chair uses one seat cushion and one back cushion with the following costs per set of cushions (one seat and one back): Shepert Company has contacted Carla Vista with an offer to sell it 4,800 sets of cushichs for $30 each. If Carla Vista bays the cushions $5 of the foxd overhead per unit will be allocated to other products. Should Carla Vista make or buy the cushions? Carla Vistashould tosaves per set