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S 47.88 24.96 6.36 11.11 Key Factor - Product Mix - Make or Buy Decision - Manufacturing vs Trading M02 Mooshikvahan Ltd is currently manufacturing

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S 47.88 24.96 6.36 11.11 Key Factor - Product Mix - Make or Buy Decision - Manufacturing vs Trading M02 "Mooshikvahan Ltd is currently manufacturing 5,000 units of Product XY 100" annually, making full use of its machine capacity. The Selling Price and Total Costs per unit associated with XY 100" are as follows - Particulars Selling Price per unit 900 -Costs per unit: Direct Materials 200 Variable Machine Operating Cost R 100 per hour) 150 Manufacturing Overhead Costs 180 Marketing and Administrative Costs 200 730 Operating Income per unit of "XY 100" 170 2.16 3.48 7.40 1.8 8.00 The Company can sell additional 3,000 units of "XY 100" if it can outsource those additional units. ABC Ltd, a Supplier of quality products, has agreed to supply upto 6,000 units of "XY 100" per year, at a price of 3 650 per unit, delivered at Hooshikvahan's factory. S 47.88 24.96 6.36 11.11 Key Factor - Product Mix - Make or Buy Decision - Manufacturing vs Trading M02 "Mooshikvahan Ltd is currently manufacturing 5,000 units of Product XY 100" annually, making full use of its machine capacity. The Selling Price and Total Costs per unit associated with XY 100" are as follows - Particulars Selling Price per unit 900 -Costs per unit: Direct Materials 200 Variable Machine Operating Cost R 100 per hour) 150 Manufacturing Overhead Costs 180 Marketing and Administrative Costs 200 730 Operating Income per unit of "XY 100" 170 2.16 3.48 7.40 1.8 8.00 The Company can sell additional 3,000 units of "XY 100" if it can outsource those additional units. ABC Ltd, a Supplier of quality products, has agreed to supply upto 6,000 units of "XY 100" per year, at a price of 3 650 per unit, delivered at Hooshikvahan's factory

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