MAF251 help plis

QUESTION 3 Synergy Bhd is one of the most reputable semi-conductor manufacturers in Penang. At present. Synergy Bhd is producing two types of semi-conductor component. These components are high-tech thus require a special machine to be produced. The production manager has made budgeted costs assuming both components will be manufactured internally. The budgeted costs are shown as follows: Direct Direct \"II-E.\" 33111 \"1351\" -IIEEII- 155 700 -EIEEI Out of the overhead cost shown above, 40% is variable in nature. The production manager approaches suppliers wl'lo is willing to supply the same components that have similar specications as 331 11 and NN111. The prices offered by the suppliers are as follows: B3111 m mm e an: cipu Univenlti Tetmolegl um CONFIDENTIAL CONFIDENTIAL 4 ACIOCT 201WAF251 However. if the management of Synergy Bhd agrees to buy the components from the suppliers. the company needs to incur modication cost and inspection cost amounting to RMZJDD per unit and RM3.50 per unit respectively. These two costs need to be Incurred for both components. At the same time, the xed overhead cost will be reduced by RM15.0DD for each component. The management of the company will assess the decision whether to manufacture or buy the components independently which means it is not compulsory to manufacture or to buy both components at the same time. Required: a. Compute the total variable cost per unit for 53111 and NN111. (3 marks) b. i. Determine the total relevant cost of making and the total relevant cost of buying for each of the components. (12 man-ts} ii. Based on your answer in part (bili) above. suggest to the management of the company whether it should make or buy each of the components. {2 merits) c. List FOUR (4} qualitative factors that should be considered in a make or to buy decision. (4 marks) (Total: 21 marks)