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The Wharton Company produces chairs. This year's expected production is 15,000 units. Currently, Wharton makes the upholstery for the chairs in its factory. Wharton's management
The Wharton Company produces chairs. This year's expected production is 15,000 units. Currently, Wharton makes the upholstery for the chairs in its factory. Wharton's management accountant reports the following costs for the upholstery for the 15,000 chairs: (Click to view the information.) Wharton has received an offer from an outside vendor to supply the upholstery for the chairs Wharton requires at $13.00 per chair. Read the requirements. 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 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). On the basis of financial considerations alone, should Wharton purchase the upholstery from the outside vendor? Wharton purchase the upholstery from the outside vendor. Data table Additional contribution margin from selling pillows Additional tooling costs Allocated fixed costs Direct manufacturing labor Direct materials Machine rent Purchase cost Variable inspection, setup, materials handling Variable manufacturing overhead
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