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If the cost of purchasing nearly the same comforter from a supplier is $88.80, what should Cozy Night do to maximize profits? QUESTION 3 Cozy

If the cost of purchasing nearly the same comforter from a supplier is $88.80, what should Cozy Night do to maximize profits? image text in transcribed
QUESTION 3 Cozy Nights Industries manufactures down-filled comforters and uses activity-based costing. The following information is provided for September Estimated Activity Indirect Allocation base Estimated quantity of allocation base activity costs Materials handling $ 12,600 Number of parts 4.200 parts Assembly 55,440 Number of parts 4.200 parts Packaging 10.920 Number of comforters 1,050 comforters Each comforter consists of 4 parts and the direct materials cost per comforter is $14.00 of the cost of purchasing nearly the same comforter from a supplier is $88.80. what should cozy Night do to maximise profits? O Close down the business. 0 Purchase the comforter from the supplier. Redesign the packaging Since the cost to manufacture the comforter is also 588.80, the company would make the same profit whether it bought the comforter or manufactured it. Continue to manufacture the comforters

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