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Winona Johnson is the president of Johnson Mfg., which manufactures coats. She is trying to decide whether to make 3,000 Type Ill coats or purchase

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Winona Johnson is the president of Johnson Mfg., which manufactures coats. She is trying to decide whether to make 3,000 Type Ill coats or purchase them from a sub contractor to fill a rush special order that she just received. There are no marketing costs on the special order. Acceptance of the special order would not necessitate any premium pay for overtime work or additional fixed costs. Johnson Mfg. has supplied the following data: Cost Data for Type III Coats: Sale Price $42 Direct Materials 15 Direct Labor 9 Fixed Mfg. Overhead 3 Variable Mfg. Overhead Variable Marketing costs 3 xed Maria Accademic... N UNK-IULM Dual De... HorribleSubs - So b... DOUBLE DEGREE.... FL Hom Variable Mfg. Overhead 6 Variable Marketing Costs 3 Fixed Marketing Costs Fixed Administrative Overhead 2 Required: (1) At what purchase price per unit would Ms. Johnson be indifferent as to whether her firm manufactured the coats or they were purchased from a subcontractor? (2) What qualitative factors might influence Ms. Johnson's decision regarding manufacturing the coats or purchasing them? BIU A Editor HTML A. IK EE3 x X, IEE VE G DTT TT. 12pt Paragra BRE

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