Cozy Nights Industries Manufactures Down-fiLled Comforters and Uses Activity-Based Costing

Multiple Choice

Cozy Nights Industries manufactures down-filled comforters and uses activity-based costing.The following information is provided for September. Each comforter consists of 4 parts and the direct materials cost per comforter is $14.00. If the cost of purchasing nearly the same comforter from a supplier is $88.80, what should Cozy Night do to maximize profits?

A) Continue to manufacture the comforters.
B) Redesign the packaging.
C) Since the cost to manufacture the comforter is also $88.80, the company would make the same profit whether it bought the comforter or
D) Close down the business.
E) Purchase the comforter from the supplier.