Requirements 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 Wharton accept the outside vendor's offer at the anticipated volume of 15,000 chairs? 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 $25 with a variable cost of $21. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Wharton make or buy the upholstery for their chairs, assuming that 15,000 chairs are produced and sold)? Show your calculations 3. The sales manager at Wharton is concerned that the estimate of 15,000 chairs may be high and believes that only 11,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make 10,000 pillows whether Wharton buys the upholstery or makes it in-house. On the basis of financial considerations alone, should Wharton purchase the upholstery from the outside vendor? Show your calculations. Data table $ Direct materials Variable direct manufacturing labor Variable manufacturing overhead Variable inspection, setup, materials handling Allocated fixed costs of plant administration, taxes, and insurance Cost for 15,000 Cost per Unit Units $ 4.75 $ 71,250 2.60 39,000 1.00 15,000 75,000 85,000 285,250 Total costs 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 Wharton accept the outside vendor's offer at the anticipated volume of 15,000 chairs? Show your calculations. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Relevant Costs Make Buy Total relevant costs On the basis of financial considerations alone, should Wharton accept the outside vendor's offer at the anticipated volume of 15,000 chairs? Wharton Vaccept the outside vendor's offer at the anticipated volume of 15,000 chairs. 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 $25 with a variable cost of $21. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Wharton make or buy the upholstery for their chairs, assuming that 15,000 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 On the basis of financial considerations alone, should Wharton make or buy the upholstery, assuming that 15,000 chairs are produced and sold)? Wharton should the upholstery, assuming that 15,000 chairs are produced and sold). Requirement 3. The sales manager at Wharton is concerned that the estimate of 15,000 chairs may be high and believes that only 11,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make 10,000 pillows whether Wharton buys the upholstery or makes it in-house. On the basis of financial considerations alone, should Wharton 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 On the basis of financial considerations alone, should Wharton purchase the upholstery from the outside vendor? Wharton purchase the upholstery from the outside vendor Requirements 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 Wharton accept the outside vendor's offer at the anticipated volume of 15,000 chairs? 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 $25 with a variable cost of $21. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Wharton make or buy the upholstery for their chairs, assuming that 15,000 chairs are produced and sold)? Show your calculations 3. The sales manager at Wharton is concerned that the estimate of 15,000 chairs may be high and believes that only 11,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make 10,000 pillows whether Wharton buys the upholstery or makes it in-house. On the basis of financial considerations alone, should Wharton purchase the upholstery from the outside vendor? Show your calculations. Data table $ Direct materials Variable direct manufacturing labor Variable manufacturing overhead Variable inspection, setup, materials handling Allocated fixed costs of plant administration, taxes, and insurance Cost for 15,000 Cost per Unit Units $ 4.75 $ 71,250 2.60 39,000 1.00 15,000 75,000 85,000 285,250 Total costs 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 Wharton accept the outside vendor's offer at the anticipated volume of 15,000 chairs? Show your calculations. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Relevant Costs Make Buy Total relevant costs On the basis of financial considerations alone, should Wharton accept the outside vendor's offer at the anticipated volume of 15,000 chairs? Wharton Vaccept the outside vendor's offer at the anticipated volume of 15,000 chairs. 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 $25 with a variable cost of $21. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Wharton make or buy the upholstery for their chairs, assuming that 15,000 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 On the basis of financial considerations alone, should Wharton make or buy the upholstery, assuming that 15,000 chairs are produced and sold)? Wharton should the upholstery, assuming that 15,000 chairs are produced and sold). Requirement 3. The sales manager at Wharton is concerned that the estimate of 15,000 chairs may be high and believes that only 11,000 chairs will be sold. Production will be cut back, freeing up work space. This space can be use to make 10,000 pillows whether Wharton buys the upholstery or makes it in-house. On the basis of financial considerations alone, should Wharton 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 On the basis of financial considerations alone, should Wharton purchase the upholstery from the outside vendor? Wharton purchase the upholstery from the outside vendor