Question

Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $15 per set. Modern Furniture's chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture's were to manufacture the cushions, the materials cost would be $6 and the labor cost would be $4 per set and that it would have to purchase cutting and sewing equipment, which would add $10,000 to annual fixed costs.\ Note: No need to enter currency symbol and comma and % just type numbers 2 decimal number and percentages (if needed) according to excel (for example: 10000 or 10.65) Required what amount company save if company make 10,000 cushions?

          Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $15 per set. Modern Furniture's chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture's were to manufacture the cushions, the materials cost would be $6 and the labor cost would be $4 per set and that it would have to purchase cutting and sewing equipment, which would add $10,000 to annual fixed costs.\

Note: No need to enter currency symbol and comma and % just type numbers 2 decimal number and percentages (if needed) according to excel (for example: 10000 or 10.65)

Required
what amount company save if company make 10,000 cushions?

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Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for 15 per set. Modern Furniture's chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture's were to manufacture the cushions, the materials cost would be6 and the labor cost would be 4 per set and that it would have to purchase cutting and sewing equipment, which would add10,000 to annual fixed costs.
Note: No need to enter currency symbol and comma and % just type numbers 2 decimal number and percentages (if needed) according to excel (for example: 10000 or 10.65)

Required
what amount company save if company make 10,000 cushions?

Added by Christopher A.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Crystal Wang

Step 1

The cost per set of cushions from the outside vendor is $15. So, the total cost of purchasing 10,000 cushions from the outside vendor would be: Total cost = Cost per set * Number of cushions Total cost = $15 * 10,000 Total cost = $150,000 Show more…

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OGM File Home Table Tools Design Layout Insert Page Layout References Meetings Review View A A Signature Line * T S Date & Time Cover Blank Page Table Picture Shapes SmartArt Charts Screenshot Hyperlink Bookmark Cross-reference Header Footer Page Text Quick WordArt Drop Equation Symbol Page * Page Break Art Number * Box * Parts - Cap * Object Pages Tables Illustrations Links Header & Footer Text Symbols X Assume that HASF_furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $15 per set. Modern Furniture's chief cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern Furniture were to manufacture the cushions, the materials cost would be $6 and the labor cost would be $4 per set, and that it would have to purchase cutting and sewing equipment, which would add $10,000 to annual fixed costs. Note: No need to enter currency symbol and comma and % just pe numbers 2 decimal number and percentages if needed according to excel for example: 10000 or 10.65) Required: What amount would the company save if the company made 10,000 cushions? + Page: 4 of 4 Words: 442 9% ? 3:39 PM 6/2/2021 M

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