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Use the following information to answer questions 4547 : Sun Corp, a manufacturer of patio furniture, is operating at 60% of plant capacity. Sun Corp's plant manager is considering buying the 6,000 patio chairs it sells each year from an outside supplier for \$45. Sun Corp's current cost per chair is $62, which is comprised of the following costs: $25.50 of direct materials, $10.50 of direct labor, and $26 of manufacturing overhead. In relation to the manufacturing overhead, $12 per unit relates to the chair supervisor that will be required to make the units while the remaining portion of the manufacturing overhead cost would be unaffected by this decision. The relevant cost of making each chair is: $36 $62 $48 $40 Sun Corp, a manufacturer of patio furniture, is operating at 60% of plant capacity. Sun Corp's plant manager is considering buying the 6,000 patio chairs it sells each year from an outside supplier for $45. Sun Corp's current cost per chair is $62, which is comprised of the following costs: $25.50 of direct materials, $10.50 of direct labor, and $26 of manufacturing overhead. In relation to the manufacturing overhead, $12 per unit relates to the chair supervisor that will be required to make the units while the remaining portion of the manufacturing overhead cost would be unaffected by this decision. A decision by Sun Corp to buy the chair should result in a net gain (loss) for each chair of (Do not round your intermediate calculations): $17 $3 $14 $5 Sun Corp, a manufacturer of patio furniture, is operating at 60% of plant capacity. Sun Corp's plant manager is considering buying the 6,000 patio chairs it sells each year from an outside supplier for $45. Sun Corp's current cost per chair is $62, which is comprised of the following costs: $25.50 of direct materials, $10.50 of direct labor, and $26 of manufacturing overhead. In relation to the manufacturing overhead, $12 per unit relates to the chair supervisor that will be required to make the units while the remaining portion of the manufacturing overhead cost would be unaffected by this decision. Suppose that if Sun Corp. decides to buy the chairs instead of manufacture them that it anticipates profits declining by $20,000 due to customers realizing that the Company no longer manufactures its own product. In consideration of this opportunity cost, should Sun Corp continue to make or buy patio chairs? Both make and buy options are the same No answer text provided. Buy Make

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