The Rider Company produces chairs. This year's expected production is 30,000 units. Currently, Rider makes the...

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The Rider Company produces chairs. This year's expected production is 30,000 units. Currently, Rider makes the upholstery for the chairs in its factory. Rider's management accountant reports the following costs for the upholstery for the 30,000 chairs: Cost per Unit Direct materials $ Variable direct manufacturing labor Variable manufacturing overhead Variable inspection, setup, materials handling Allocated fixed costs of plant administration, taxes, and insurance Total costs 69 Cost for 30,000 Units 180,000 84,000 45,000 180,000 75,000 564,000 6.00 $ 2.80 1.50 $ Rider has received an offer from an outside vendor to supply the upholstery for the chairs Rider requires at $16.00 per chair. Requirement 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 costs $40 with a variable cost of $34. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Rider make or buy the upholstery for their chairs, assuming that 30,000 chairs are produced (and sold)? Show your calculations. (Enter any deductions with a parentheses or a minus sign. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Make Buy Relevant Costs Total relevant costs On the basis of financial considerations alone, should Rider make or buy the upholstery, assuming that 30,000 chairs are produced (and sold)? Rider should the upholstery, assuming that 30,000 chairs are produced (and sold). Relevant Costs 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 Buy ider make or buy the upholster 000 chairs are produced (and s Make Total relevant costs On the basis of financial considerations alone, should Rider make or buy the upholstery, assuming tha Rider should the upholstery, assuming that 30,000 chairs are produced (and sold). Requirement anager at Rider is concerned that the estimate of 30,000 chairs may be make Choose from buy er any number in the input fields and then continue to the next ques The Rider Company produces chairs. This year's expected production is 30,000 units. Currently, Rider makes the upholstery for the chairs in its factory. Rider's management accountant reports the following costs for the upholstery for the 30,000 chairs: Cost per Unit Direct materials $ Variable direct manufacturing labor Variable manufacturing overhead Variable inspection, setup, materials handling Allocated fixed costs of plant administration, taxes, and insurance Total costs 69 Cost for 30,000 Units 180,000 84,000 45,000 180,000 75,000 564,000 6.00 $ 2.80 1.50 $ Rider has received an offer from an outside vendor to supply the upholstery for the chairs Rider requires at $16.00 per chair. Requirement 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 costs $40 with a variable cost of $34. No other costs would change and the company expects to sell 10,000 pillows. On the basis of financial considerations alone, should Rider make or buy the upholstery for their chairs, assuming that 30,000 chairs are produced (and sold)? Show your calculations. (Enter any deductions with a parentheses or a minus sign. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Make Buy Relevant Costs Total relevant costs On the basis of financial considerations alone, should Rider make or buy the upholstery, assuming that 30,000 chairs are produced (and sold)? Rider should the upholstery, assuming that 30,000 chairs are produced (and sold). Relevant Costs 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 Buy ider make or buy the upholster 000 chairs are produced (and s Make Total relevant costs On the basis of financial considerations alone, should Rider make or buy the upholstery, assuming tha Rider should the upholstery, assuming that 30,000 chairs are produced (and sold). Requirement anager at Rider is concerned that the estimate of 30,000 chairs may be make Choose from buy er any number in the input fields and then continue to the next ques

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Requirement 2 For this question assume that if the upholstery is purchased outside the available u... View the full answer