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PROBLEM 1. Abbie Company produces and sells a product with the following unit costs: Prime Costs P10 Variable Indirect Manufacturing Costs 6 Fixed Indirect Manufacturing

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PROBLEM 1. Abbie Company produces and sells a product with the following unit costs: Prime Costs P10 Variable Indirect Manufacturing Costs 6 Fixed Indirect Manufacturing Costs Variable Marketing Costs 8 Fixed Marketing Costs 3 Total Unit Costs P31 The company is considering whether to continue producing the product or simply buy it from an outside supplier. has found a supplier which can produce the product per company's specifications, selling it at P20 per unit. If tl company buys the product, variable marketing costs would be reduced by 60%. REQUIRED: 1. What will be the best decision according to circumstances

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