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CHEER UP! manufactures computer tables. Recently a supplier has offered the tables of the same quality at P1,600 each with an assurance of continued supply.

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CHEER UP! manufactures computer tables. Recently a supplier has offered the tables of the same quality at P1,600 each with an assurance of continued supply. The following is the budget for 4000 units prepared for the quarter ending 30 September 2020: P1,000,000 900,000 600,000 700,000 Raw material cost Direct labor Production overheads: Variable Fixed Distribution costs: Variable Fixed Administration costs: Variable Fixed 300,000 375,000 250,000 625,000 Should the company make or buy? Show the computation and explanations What would be the decision if the supplier offered the tables at P 1400 each? Show the computation and explanation

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