You are given the following data relating to boughtout prices and the cost of production of undernoted items. Prepare a suitable statement showing which items should be purchased from outside giving ranks in order of preference for buying, assuming

(a) there is no constraint or key factor;

(b) machine hours is a key factor; and

(c) labour hours is a key factor.

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Item A Item B Item C Rs. Rs. Rs. Purchase price per unit 30 40 50 Variable cost per unit 18 48 34 Fixed cost per unit 6 10 14 Production per machine hour 1 2 1.50 Labour hours required per unit 2 1 4