Question
a. What will be the total relevant cost of 80,000 drums if they are manufactured internally as compared to being purchased? What would be the
a. What will be the total relevant cost of 80,000 drums if they are manufactured internally as compared to being purchased?
What would be the per unit cost of each drum manufactured internally? (Round your answer to 2 decimal places.
Which course of action would you recommend to the managing director?
Purchase from the outside supplier | |
Manufacture internally | |
Indifferent between the two alternatives What will be the total relevant cost of 100,000 drums if they are manufactured internally? |
What would be the per unit cost of drums?
What course of action would you recommend if 100,000 drums are needed each year?
Indifferent between the two alternatives | |||||||
Manufacture internally | |||||||
What will be the total relevant cost of 150,000 drums if they are manufactured internally? What would be the per unit cost of drums? What course of action would you recommend if 150,000 drums are needed each year?
| Purchase from the outside supplier |
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