The Oulette Company produces chairs. This year's expected production is $25,000$ units. Currently,

Oulette makes the upholstery for the chairs in its factory. Oulette's management accountant

reports the following costs for the upholstery for the $25,000$ chairs:

$($Click to view the information.$)$

Oulette has received an offer from an outside vendor to supply the upholstery for the

chairs Oulette requires at $$10\mathrm{.}00$ per chair.

Read the requirements.

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

Oulette accept the outside vendor's offer at the anticipated volume of $25,000$ 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 Oulette accept the outside vendor's offer at the anticipated volume of $25,000$ chairs?

Oulette accept the outside vendor's offer at the anticipated volume of $25,000$ 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 $$35$ with a

variable cost of $$29.$ No other costs would change and the company expects to sell $10,000$ pillows. On the basis of financial considerations alone, should Oulette make or buy the upholstery for

their chairs, assuming that $25,000$ 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.$)$ Total relevant costs

On the basis of financial considerations alone, should Oulette make or buy the upholstery, assuming that $25,000$ chairs are produced $($and sold$)?$

Oulette should

the upholstery, assuming that $25,000$ chairs are produced $($and sold$).$

Requirement $3.$ The sales manager at Oulette is concerned that the estimate of $25,000$ chairs may be high and believes that only $21,000$ chairs will be sold. Production will be cut back, freeing up

work space. This space can be use to make $10,000$ pillows whether Oulette buys the upholstery or makes it in$-$house. On the basis of financial considerations alone, should Oulette 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.$)$

On the basis of financial considerations alone, should Oulette purchase the upholstery from the outside vendor?

Oulette

purchase the upholstery from the outside vendor.Read the requirements.

Requirements

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 Oulette accept the outside vendor's

offer at the anticipated volume of $25,000$ chairs? Show your calculations.

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 $$35$ with a variable cost of $$29.$ No other

costs would change and the company expects to sell $10,000$ pillows. On the basis of financial

considerations alone, should Oulette make or buy the upholstery for their chairs, assuming that $25,000$

chairs are produced $($and sold$)?$ Show your calculations.

The sales manager at Oulette is concerned that the estimate of $25,000$ chairs may be high and believes that

only $21,000$ chairs will be sold. Production will be cut back, freeing up work space. This space can be use to

make $10,000$ pillows whether Oulette buys the upholstery or makes it in$-$house. On the basis of financial

considerations alone, should Oulette purchase the upholstery from the outside vendor? Show your

calculations.