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Q1/Ahmed WLL is selling automobile spare parts. The demand for a car wheel cover is at the rate of 5500 per year and this demand

Q1/Ahmed WLL is selling automobile spare parts. The demand for a car wheel cover is at the rate of 5500 per year and this demand is going to continue for next two years. The company is decising weather to buy it from outside or manufacture it. If it buys from outside it will costs the company BD2.5 per unit. If it produces the fixed cost will be BD 9,850 and variable cost of BD 1.4 per unit. As the production manager of Ahmed WLL should your company manufacture or buy the wheel cover from outside?

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