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QU5STION 9 Usahe Jaya Ltd has produced a new generation product. The monthly sales of the product is 10,000 units. For the moment, one of
QU5STION 9 Usahe Jaya Ltd has produced a new generation product. The monthly sales of the product is 10,000 units. For the moment, one of the components for this product, known as YYY, is purchased fram Othal Company. The component YyY is purchased at RM180 per unit. Each unit of the new generation product needs a unit of component YYY. The following was provided by the production department for a unit of YYY: Additional information Is glven as follows: a) A special machine should be hired to produce component YYY. Rental expenses for the machine is RM50,000 per month. b) Machine maintenance expenses is Rm3,000 per month c) Three additional workers are needed for the production of component YrY. Their salary is RM2,000 per month for each worker d) One of the workers must be appointed to act as a quality control manager and his salary is RMS000 per month. You are required to determine whether the company should make or buy the component Y
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