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QUESTION THREE A. A. Manufacturing company finds that while it costs to make component X, the same is available in the market at K5.75 each,
QUESTION THREE A. A. Manufacturing company finds that while it costs to make component X, the same is available in the market at K5.75 each, with all assurance of continued supply. The breakdown of cost is: K Materials 2.75 Labour 1.75 Variable overheads 0.50 Depreciation and other fixed cost 6.25 1.25 Required (a) Should the company make or buy the component? (10 Marks) (b) What should be your decision if the supplier offered component at K4.85 each? (5 Marks) fu the product is
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