Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirement 1 . Assume that if the outside vendor supplies the upholstery, the facility where the upholstery is currently made will remain idle. On the

Requirement 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
Ward accept the outside vendor's offer at the anticipated volume of 30,000 chairs? Show your calculations. (If an input field is not used in the table, leave the input field empty; do not enter a zero.)
On the basis of financial considerations alone, should Ward accept the outside vendor's offer at the anticipated volume of 30.000 chairs?
Ward
accept the outside vendor's offer at the
Requirement 2. For this question, assume that if the upho
variable cost of $31. No other costs would change and the
their chairs, assuming that 30,000 chairs are produced (an
the input field empty; do not enter a zero.)
Data table
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 WardWard accept the outside vendor's offer at the anticipated volume of 30 comma 00030,000chairs? 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 $ 35$35 with a variable cost of $ 31$31. No other costs would change and the company expects to sell10,000 pillows. On the basis of financial considerations alone, should WardWard make or buy the upholstery for their chairs, assuming that 30 comma 00030,000 chairs are produced(and sold)? Show your calculations.
3.
The sales manager at WardWard is concerned that the estimate of 30 comma 00030,000 chairs may be high and believes that only 24 comma 00024,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make10,000 pillows whether WardWard buys the upholstery or makes it in-house. On the basis of financial considerations alone, should WardWard purchase the upholstery from the outside vendor? Show your calculations.
Requirement 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 costs $ 35$35 with a variable cost of $ 31$31. No other costs would change and the company expects to sell10,000 pillows. On the basis of financial considerations alone, should WardWard make or buy the upholstery for their chairs, assuming that 30 comma 00030,000 chairs are produced(and sold)? Show your calculations. (Enter any deductions with a parentheses or a minus sign. If an input field is not used in the table, leave the input field empty; do not enter a zero.)
Relevant Costs
Make
Buy
Total relevant costs
Part 4
On the basis of financial considerations alone, should WardWard make or buy the upholstery, assuming that 30 comma 00030,000 chairs are produced(and sold)?
WardWard should
make
buy
the upholstery, assuming that 30 comma 00030,000 chairs are produced(and sold).
Part 5
Requirement 3. The sales manager at WardWard is concerned that the estimate of 30 comma 00030,000 chairs may be high and believes that only 24 comma 00024,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make10,000 pillows whether WardWard buys the upholstery or makes it in-house. On the basis of financial considerations alone, should WardWard purchase the upholstery from the outside vendor? Show your calculations. (If an input field is not used in the table, leave the input field empty; do not enter a zero.)
Relevant Costs
Make
Buy
Total relevant costs
Part 6
On the basis of financial considerations alone, should WardWard purchase the upholstery from the outside vendor?
WardWard
should
should not
purchase the upholstery from the outside vendor.
Ward@CNUM{30000}Ward should@CNUM{30000}On the basis of financial considerations alone, should Ward purchase the upholstery from the outside vendor?Wardpurchase the upholstery from the outside vendor.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

More Books

Students also viewed these Accounting questions

Question

What is dividend payout ratio ?

Answered: 1 week ago

Question

Explain the factors affecting dividend policy in detail.

Answered: 1 week ago