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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
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 | ||||
Direct labor/unit | $3.00 | ||||
Variable production overhead | $0.50 | ||||
Fixed production overhead | $0.50 | ||||
Total production per unit cost | $6.00 | ||||
Required | |||||
total per unit manufactuirng cost | |||||
total per unit cost if company purchae from outsiders |
| ||||
per unit additional profit if company purchase from outsider |
I just Need total per unit manufactuirng cost ? Per unit
total per unit cost if company purchae from outsiders ? Per unit
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