Question Four: (10 Marks) (CLO + 4) Al Foah Furniture manufactures computer tables. Recently a supplier has offered same quality at $14 each with an assurance of continued supply. The following units prepared for the quarter ending 30 September 2019: y a supplier has offered the tables of the "pply. The following is the budget for 4000 Raw material cost 20000 Direct wages 18000 Production overheads Variable 12000 Fixed 14000 Distribution costs Variable 6000 Fixed 7500 Administration costs Variable 5000 Fixed 12500 Required: a) Should Al Foah Furniture accept the offer from the supplier? (7 Marks) b) What would be the decision if the supplier offered the tables at $12 each
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!