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Data table Requirements 1. Assume that if the outside vendor supplies the upholstery, the facility where the upholstery is currently made will remain idle. On
Data table Requirements 1. Assume that if the outside vendor supplies the upholstery, the facility where the upholstery is currently made will remain idle. On the basis of financial considerations alone, should Oulette accept the outside vendor's offer at the anticipated volume of 30,000 chairs? Show your calculations. 2. For this question, assume that if the upholstery is purchased outside, the available unused facilities will be used to make pillows to match the chairs. Each pillow sells for $25 with a variable cost of $21. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Oulette make or buy the upholstery for their chairs, assuming that 30,000 chairs are produced (and sold)? Show your calculations. 3. The sales manager at Oulette is concerned that the estimate of 30,000 chairs may be high and believes that only 25,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make 10,000 pillows whether Oulette buys the upholstery or makes it in-house. On the basis of financial considerations alone, should Oulette purchase the upholstery from the outside vendor? Show your calculations. Data table Requirements 1. Assume that if the outside vendor supplies the upholstery, the facility where the upholstery is currently made will remain idle. On the basis of financial considerations alone, should Oulette accept the outside vendor's offer at the anticipated volume of 30,000 chairs? Show your calculations. 2. For this question, assume that if the upholstery is purchased outside, the available unused facilities will be used to make pillows to match the chairs. Each pillow sells for $25 with a variable cost of $21. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Oulette make or buy the upholstery for their chairs, assuming that 30,000 chairs are produced (and sold)? Show your calculations. 3. The sales manager at Oulette is concerned that the estimate of 30,000 chairs may be high and believes that only 25,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make 10,000 pillows whether Oulette buys the upholstery or makes it in-house. On the basis of financial considerations alone, should Oulette purchase the upholstery from the outside vendor? Show your calculations
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