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The Oulotie Compary produces chairs. This year's expected production is 15,000 units, Currenty. Oulette makes the uphiotstery for the chairs in its factory. Ouleses managertiont

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The Oulotie Compary produces chairs. This year's expected production is 15,000 units, Currenty. Oulette makes the uphiotstery for the chairs in its factory. Ouleses managertiont accountart feports the Qulotie tas received an effer trom an outside vender to supply the cpholetery tor the ctart following coses for the upholstery for the 15.000 chass: Qulette requires at 51300 per chat Click to virw the ieformation) Read the tecuirments. Oulente zaro.? The Oulette Company produces chairs. This years axpected production is 15.000 uniss. Curreriliy Oulette makes the upholistary for the chain in ts factory. Oulelle's management accountant reports the Wolowing costs for tho upholstery for the 15,000 chairs: Oulette requires at $13.00 pecc chair. Click to vitew the (irformation ) Alas the cecuintreets Total relevary cesss Duletie thouls the upholatery, assuming that 15,000 chairs we probsiced innd wold Oilette should the upholslery, ascuming that 15,000 chairs are prodsced (and sold? the outside vendon? Show your calculations. (if an input fiels is not used in the takle leave the incut fald empty de not enser a aero) Outethe purchase the upheluery trom the culaide wantor. 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 Oulette 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 avallable unused facilities will be used to make pillows to match the chairs. Each pillow sells for $28 with a variable cost of $24. 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 15,000 chairs are produced (and sold)? Show your calculations. 3. The sales manager at Oulette is concerned that the estimate of 15,000 chairs may be high and believes that only 12,000 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

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