1 use the relevant quantitative information to advise Sunfoil Ltd whether it should make or buy the bottles

Question 5 Answer the questions from the information provided. Use the relevant quantitative information to advise Sunfoil Ltd whether it should make or buy the bottles. 5.1 INFORMATION Sunfoil Ltd, an oil bottling company, reported the following costs of manufacturing 50 000 glass bottles for bottling its oil: Direct materials Direct labour Variable factory overheads Fixed factory overheads (6 marks) Total costs Total cost R45 000 R15 000 R30 000 R60 000 R150 000 R130000 Another manufacturer offered to sell the bottles for R2.60 each to Sunfoil Ltd. Suppose Sunfoil Ltd's capacity to make bottles would become idle if it purchases the bottles and that the R37 500 supervisor's salary is the only fixed cost that the company would eliminate