ACCG$70011-$ Finance and Managerlal Accouunting

Assignment H$2$

Make or Buy

All of the peripheral devices produced by Swore and Bore use the same cable to connect the device to a USB port on a computer. The company has been producing this cable in$-$house for some time.

Another company, "LimeWire", has approached the production manager with a proposition to sell the necessary cables to Swore and Bore.

Data related to the cost of making a single USB cable is below:

The contract with LimeWire would be for $10,000$ USB cables at a cost of $$5\mathrm{.}60$ per cable.

$\backslash$table$[[,$Per Unit,$10,000$ Units$],[$Direct Materials,$$2\mathrm{.}30,$$$23,000$