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During 2017, Imperial plans to sell 15,000 whirlpools (requiring 15,000 pumps). Determine whether the company should make or buy the pumps and the amount of
During 2017, Imperial plans to sell 15,000 whirlpools (requiring 15,000 pumps). Determine whether the company should make or buy the pumps and the amount of cost savings related to the better alternative. What qualitative factors should be considered in the outsourcing decision? Computer Village sells computer equipment and home office furniture. Currently the furniture product line takes up approximately 50 percent of the company's retail floor space. The president of Computer Village is trying to decide whether the company should continue offering furniture or concentrate on computer equipment. Below is a product line income statement for the company. If furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of computer equipment can increase by 13 percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales. Determine whether Computer Village should discontinue the furniture line and the financial benefit (cost) of dropping it
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