QUESTION 1 The management of Wind Chime Bhd is facing some problem deciding whether to make or buy BT21 component. The company currently manufactures 50,000 units of this component per year at the following costs: The fixed overhead is absorbed based on production hour. The company has received a quotation of Rm15.50 per component from outside supplier. You are required to: a) Display whether the company should buy or continue to manufacture the components. Support your answer with figures based on financial consideration only ( 5 marks) b) If it is found that to continue manufacturing BT21 component would restrict the output of a new product CT21 by 40,000 units per annum, display the prove of affect for 'make or buy' decision. The new selling price of the products is RM20 per unit and its marginal costs is RM12 per unit QUESTION 1 The management of Wind Chime Bhd is facing some problem deciding whether to make or buy BT21 component. The company currently manufactures 50,000 units of this component per year at the following costs: The fixed overhead is absorbed based on production hour. The company has received a quotation of Rm15.50 per component from outside supplier. You are required to: a) Display whether the company should buy or continue to manufacture the components. Support your answer with figures based on financial consideration only ( 5 marks) b) If it is found that to continue manufacturing BT21 component would restrict the output of a new product CT21 by 40,000 units per annum, display the prove of affect for 'make or buy' decision. The new selling price of the products is RM20 per unit and its marginal costs is RM12 per unit