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Question 1 0 out of 10 points IKEE Inc. currently manufactures rocking chairs as its main product. Each chair uses oneseat cushion and one back
Question 1 0 out of 10 points IKEE Inc. currently manufactures rocking chairs as its main product. Each chair uses oneseat cushion and one back cushion with the following costs per set of cushions (one seat and oneback): Direct materials S 1 10 Direct labor Variable overhead Fixed overhead $24 Total Bob's furniture has contacted IKEE Inc. with an offer to sell it 5,000 sets of cushions for $18 each. If IKEE Inc. buys the cushions, $2 of the fixed overhead per unit will be allocated to other products. Question1: Should IKEE Inc. make or buy the cushions? Cost to make Cost to buy $[1] Incremental cost per set Make or Buy decision [2] (Write make or buy in the bracket)
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