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on 7 + ered Erongo cc is considering whether to continue making a component or to buy it from an outside supplier. It uses 12,000
on 7 + ered Erongo cc is considering whether to continue making a component or to buy it from an outside supplier. It uses 12,000 of the components each year. The internal manufacturing cost comprises: N$/unit ed out of 2 ag question Direct materials 3.00 Direct labour 4.00 1.00 Variable overhead Specific fixed cost Other fixed costs 3.00 2.00 13.00 If the direct labour were not used to manufacture the component, it would be used to increase the production of another item for which there is uniirited demand. This other item has a contribution of N$10.00 per unit but requires N$8.00 of labour per unit 1 What is the maximum price per componem, at which buying is preferable to Internal manufactur Type here to search w
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