Question Four: (10 Marks) (CLO 14) Al Foah Furniture manufactures computer tables. Recently a supplier...
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Question Four: (10 Marks) (CLO 14) 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: ently a supplier has offered the tables of the supply. The following is the budget for 4000 Raw material cost 20000 Direct wages Production overheads 18000 Variable 12000 Fixed 14000 Distribution costs Variable 6000 Fixed 7500 Administration costs Variable 5000 12500 Fixed 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
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