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QUESTION 2. )Pelican Products plc includes a Squidget in one of its products. The Squidget takes one hour to make has the following costs per

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QUESTION 2. )Pelican Products plc includes a Squidget in one of its products. The Squidget takes one hour to make has the following costs per unit: Variable cost $10 If they make not cost Fixed cost allocation If the business decides to purchase the Squidget from an outside source, it can use the spare capa in the factory to produce Didgits that have a variable cost of $12 per unit and which can be sold $20 per unit. The Didget takes two hours to make. What is the maximum amount that Pelican Products should be prepared to pay a supplier for a Squidget? A $10 B $14 C $18 D $20

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