Wharton has received an offer from an outside vendor to supply the upholstery for the chairs Wharton requires at $18.00 per chair The Wharton Company produces chairs. This year's expected production is 25,000 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 25,000 chairs: E (Click to view the information.) 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 Wharton 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.) Relevant Costs Make Buy Requirements X Total relevant costs 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 25,000 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 $24 with a variable cost of $19. 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 25.000 chairs are produced (and sold)? Show your calculations 3. The sales manager at Wharton 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 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. x Data Table Print Done 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 25,000 Cost per Unit Units $ 4.25 $ 106,250 2.00 50,000 0.90 22,500 250,000 35,000 Choose froll $ 463,750 Totalcocte Wharton has received an offer from an outside vendor to supply the upholstery for the chairs Wharton requires at $18.00 per chair The Wharton Company produces chairs. This year's expected production is 25,000 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 25,000 chairs: E (Click to view the information.) 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 Wharton 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.) Relevant Costs Make Buy Requirements X Total relevant costs 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 25,000 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 $24 with a variable cost of $19. 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 25.000 chairs are produced (and sold)? Show your calculations 3. The sales manager at Wharton 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 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. x Data Table Print Done 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 25,000 Cost per Unit Units $ 4.25 $ 106,250 2.00 50,000 0.90 22,500 250,000 35,000 Choose froll $ 463,750 Totalcocte