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as follows: Zonko Manufacturing has offered to provide Umbridge with all of its plastic pink...

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Accounting

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as follows: Zonko Manufacturing has offered to provide Umbridge with all of its plastic pink kitten needs for $27 per kitten. If Umbridge accepts this offer, Umbridge will be able to use the freed up space to generate an additional $40,000 of income each year to produce more of its plastic pink tea sets. Only $3 per kitten of the fixed manufa fyuring overhead cost above could be avoided. Direct labor is an avoidable cost in this decision. Based on this information, would Umbridge be financially better off making the kittens or buying the kittens and by how much

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