Shah Ltd needs a component for one of its products. It can subcontract production of the component
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Shah Ltd needs a component for one of its products. It can subcontract production of the component to a subcontractor who will provide the components for £20 each.
Shah Ltd can produce the components internally for a total variable cost of £15 per component. Shah Ltd has spare capacity.
Should the component be subcontracted or produced internally?
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Related Book For
Accounting An Introduction
ISBN: 9780273733201
5th Edition
Authors: Eddie McLaney, Dr Peter Atrill, Eddie J. Mclan
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