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An automobile manufacturing company finds that the cost of making Part No. 208 in its own workshop is RO6. The same part is available in
An automobile manufacturing company finds that the cost of making Part No. 208 in its own workshop is RO6. The same part is available in the market at RO5.60 with an assurance of continuous supply. The cost data to make the part are: Material RO 2.00 Direct labor RO 2.50 Other variable cost RO 0.50 Fixed cost RO 1.00 RO 6.00 Should be part be made or brought
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