Ivanhoe 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 Direct labor Variable overhead Fixed overhead Total $4 13 8 Ivanhoe should 11 $36 Shepert Company has contacted Ivanhoe with an offer to sell it 4,300 sets of cushions for $30 each. If Ivanhoe buys the cushions, $5 of t the fixed overhead per unit will be allocated to other products. Should Ivanhoe make or buy the cushions? to save $ per set.

Ivanhoe 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): Shepert Company has contacted Ivanhoe with an offer to sell it 4,300 sets of cushions for $30 each. If Ivanhoe buys the cushions, $5 of the fixed overhead per unit will be allocated to other products. Should Ivanhoe make or bury the cushions? Ivanhoe should tosaves perset