Colin O'Shea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee
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Question:
Colin O'Shea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee tables. The coffee tables have a round tabletop and four decorative legs. An offer for $500 per table was received. Colin found an unfinished round tabletop that he could buy for $50 each.
The quantitative cost data to make the tabletop is shown below:
Direct materials
$10
Direct labor
35
Variable overhead
10
Fixed overhead
7
What qualitative factors would Colin consider before he decides to buy the tabletop or make it? (Hint: No calculations required]
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