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Mark Obtained 2.1 Yoga, an exercise equipment producer, needs to determine whether it would be cheaper to make its own mats or to purchase mats

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Mark Obtained 2.1 Yoga, an exercise equipment producer, needs to determine whether it would be cheaper to make its own mats or to purchase mats from Mikro. Yoga requires 5 000 mats per month. Mikro will charge R100 per mat. Cost information on internal production of 5 000 mats is as follows: R 25.00 Direct Materials Direct Labour Manufacturing Overhead Variable Fixed R 40 R 15 R 50 000 40% of fixed overhead can be avoided if the mats are purchased externally. REQUIRED: Determine which alternative would be more cost effective and by how much

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