Colin O’Shea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee tables. The coffee tables have a round table top and four decorative legs. An offer for $500 per table was received. Colin found an unfinished round table top that he could buy for $50 each.

A. Using this quantitative cost data to make the table top, should Colin buy the table top or make it?

B. What qualitative factors would be included in your decision.

C. Can the vendor make it to the same quality standards? Can it be completed on time? Is there idle capacity in the factory that could be used?

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Direct materials Direct labor Variable overhead Fixed overhead $10 35 10 7