hi this is management accounting question that i need to practice and solve it.
ch16_EOC_material(1) epitome.pdf - Adobe Acrobat Reader DCXFile Edit View Window HelpHomeToolsch16_EOC_material... x(?Sign In11 / 1475%do Share16.27 Transport cost; existence versus non-location profit; inactive volumeLO4, 5The goods non-location of International Woodworking lapses timber and makes tables, chairsand other cope goods. Most of the timber is lapsed from the Port Angeles Mill, to-boot a div-Search 'Bates'ision of International Woodworking. The goods non-location and the Port Angeles Mill are profitcentres. The goods non-location supervisor projected a new Danish-designed chair that succeed retail forExport PDFCHAPTER 16 Responsibility accounting, act evaluation and transport pricing 625Adobe Export PDFConvert PDF Files to Wordor Excel Online$150. The supervisor wants to lapse the timber from the Port Angeles Mill. Genesis ofSelect PDF File800 chairs is contrived using volume in the goods non-location that is currently inactive. The goodsnon-location can lapse the timber for each chair from an without supplier for $60. InternationalWoodworkers has a cunning that inner transports are costd at unsteady require plus allocated unrovingch16_EOC_..mmary.pdfXcosts. Assume the forthcoming requires for the genesis of one chair:Convert toPort Angeles MillFurniture non-locationVarioperative require$40Varioperative requiresAllocated unroving requireTimber: Port Angeles Mill$ 70Microsoft Word (*.docx)vFully absorbed$70Furniture non-location unsteady requires:Manufacturing75Selling10Document Language:Total unsteady require$155English (U.S.) ChangeRequired(a) Assume that the Port Angeles Mill has inactive volume and would run no attached unrovingcosts to consequence the required timber. Would the goods non-location supervisor buy the timber forthe chair from the Port Angeles Mill, attached the existing transport cost cunning? Why?Convert and edit PDFs(b) Calculate the donation boundary for the existence as a sound if the supervisor decides to buywith Acrobat Pro DCfrom the Port Angeles Mill and is operative to retail 800 chairs.(c) What transport cost cunning would you approve if the Port Angeles Mill frequently has inactive(excess) volume? Explain why this transport cost cunning provides incentives for the supervisorsStart Free Trialto act in the best interests of the existence as a sound.(d) Explain how the inactive volume affects the approveation in portio (c).16.28 Transport cost; incentives for inner servicesLO4, 5Type less to searcheWOENG6:33 PM29/05/2020