QUESTION 3 A leather jacket manufacturing company currently producing 100 000 unit of jackets monthly. If the company decided to buy, they have to pay RM130 per unit. The variable cost is all based on the production level while most fixed cost will be there regardless the production. The company need five supervisors to monitor all manufacturing process. However, they only need 2 supervisors to handle the products if they decide not to produce. Make 8,000,000 1,500,000 2,000,000 11,500,000 Variable costs Direct materials ($80 per unit) Direct labor ($15 per unit) Variable overhead ($20 per unit) Total Variable Costs Fixed Costs Depreciation of Building Depreciation of Equipment Supervisory Salaries Other Total Fixed Costs Total Cost 800,000 900,000 75,000 400,000 2,175,000 13,675,000 Calculate the cost per unit if they decide to buy and decide on should they make or buy