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ABC Limited manufactures a range of PC components, including Digi X. As part of a cost review, the company has found a supplier who has
ABC Limited manufactures a range of PC components, including Digi X. As part of a cost review, the company has found a supplier who has offered to supply Digi X at a price of 80. ABC Limited's cost schedule for Digi X is shown below. Direct Labore Direct Materials Variable Overheads- Fixed overheads charge Total cost of one Digi Xe 254 400 100 40 | 115 | Required If Digi X is purchased, what is 1) The amount in ABC Limited will save or The amount by which ABC Limited will be worse off? Select your answer from the choices below: A) ABC Limited will save 154 B) ABC Limited will save 352 C) ABC Limited will be worse off by 5e D) ABC Limited will be worse off by 154 E) None of the above
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