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4 question Company A has to decide whether to manufacture internally or to buy or contract from outsiders. Company A is able to contract
4 question Company A has to decide whether to manufacture internally or to buy or contract from outsiders. Company A is able to contract with another company to supply them ready make at $5 each. The details of Company A internal production costs are as follows Direct material/unit $2.00 Deect laborumit $3.00 Variable production overhead $0.50 Feed production overhead $0.50 Total production per unit cost $6.00 The company also need to pay for transport charges of $5.000 for the delivery of 3.000 units of the product Calculate the relevant cost of making the product $1,000 Oh. $20,000 Oc$16,500 4 $15,000 udget, total required are the badgeed sales unit pluc
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