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Direct wages 40 upervision- avoidable if manufacture discontinued 10 Floor space occupancy 7 The assemblies could be purchased for $ 6.10 each from an outside
Direct wages 40\ upervision- avoidable if manufacture discontinued 10\ Floor space occupancy 7\ The assemblies could be purchased for $ 6.10 each from an outside supplier. If this was done, the floor space vacated could be used for storage purposes, saving warehouse rent and transport costs of $ 18 000 per annum.\ Should the company continue to assemble the component, or buy it from the outside supplier?
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