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$ 15 8 4. A company manufactures 4 components (L,M,N and P) which are incorporated into different products. All the components are manufactured using the
$ 15 8 4. A company manufactures 4 components (L,M,N and P) which are incorporated into different products. All the components are manufactured using the same general purpose machinery. The following production cost and machine hour data are available, together with the purchase prices from an outside supplier. L M N P Production Cost: $ $ $ Direct material 12 18 8 Direct labour 25 15 10 Variable overhead 8 7 5 4 Fixed overhead 10 6 4 3 Total 55 46 34 23 Purchase price from outside supplier $57 $55 $54 $50 Machine hours per unit 3hrs 5hrs 4hrs 6hrs Manufacturing requirements show a need for 1,500 units of each component per week. The maximum number of general purpose machinery hours available per week is 24,000. What number of units should be purchased from the outside supplier
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