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QUESTION 6 EBOG Lid manufactures four specialised designer shirts for men: X, X, X, and X.. The estimated costs of producing the following respective units

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QUESTION 6 EBOG Lid manufactures four specialised designer shirts for men: X, X, X, and X.. The estimated costs of producing the following respective units in the forthcoming year are as follows: Designer Shirt Type Production (units) 1,000 2,000 4,000 3,000 GHC GHC GHc GHE Unit marginal costs: Direct materials 4 5 2 4 Direct labour 8 9 4 6 Variable production overheads 2 3 1 2 17 2 12 Fixed costs (FC) incurred specifically as a result of making each shirt are: Designer Shirt Type Other FC Total Committed FC GHC GHC GHC GH GHc GHc Fixed Costs 1,000 5,000 6,000 8,000 30,000 50,000 Dubai Ltd, an overseas garment manufacturer has offered to supply EBOG Led the same designer shirts for the following prices: Designer Shirt Type X X X X GHC GHC GHC GHc Prices 12 21 10 14 i. Should EGOG Lid manufacture the garments itself or purchase from the overseas supplier, Dubai Ltd? (15 marks) ii. What other factors should EBOG Ltd consider in addition to cost comparisons? (5 marks) iii. Several factors influence make-or-buy decisions in business. As a management accountant, identify and explain any five of such factors. (5 marks) (Total 25 marks)

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