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(1) Amman company produces fax machines, and intervention in the manufacturing process piece Spare Parts X .The company needs to 100000 pieces or units annually.

image text in transcribed (1) Amman company produces fax machines, and intervention in the manufacturing process piece Spare Parts X .The company needs to 100000 pieces or units annually. The company can buy a piece of the necessary parts from an outside supplier at 9 JD per piece, and will be the cost of transportation JD 1 per piece, as the company can manufacture the piece internally. The following are the estimated costs for the process of manufacturing the required quantity is 100000 pieces: Total costs JD The cost of per piece JD Direct Statement 400000 4 Material 200000 2 Direct labor 200000 2 Industrial variable indirect 350000 3.5 Industrial fixed costs 1150000 11.5 Total Required: Identify suitable alternative: Decision internal manufacturing or purchasing decision and in accordance with the following cases: 1. Exclude the entire industrial fixed costs. 2. Exclude half of Industrial fixed costs. 3. Exclude 20% of the Industrial fixed costs. 4. Exclude direct labor

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