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Cullumber Furniture currently manufactures rocking chairs as its main product. Each chair uses one seat cushion and one back cushion with the following costs per
Cullumber 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 $3 Direct labor 12 Variable overhead 7 Fixed overhead Total 10 $32 Shepert Company has contacted Cullumber with an offer to sell it 4,200 sets of cushions for $26 each. If Cullumber buys the cushions, $4 of the fixed overhead per unit will be allocated to other products. Should Cullumber make or buy the cushions? Cullumber should to save $ Save for Later Using multiple attempts will impact your score. 25% score reduction after attempt 2 per set. Attempts: 0 of 3 used Submit
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