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Sixth task: 1- Analyze the available data to provide your professional opinion on the appropriate decision that the company's management must take, after calculating 2-
Sixth task: 1- Analyze the available data to provide your professional opinion on the appropriate decision that the company's management must take, after calculating 2- The costs appropriate for the decision to manufacture or purchase from abroad, using the comparison table. You have the following data available: The company produces electric generators in one of its production lines, and it enters the process of manufacturing those generators piece (m), and the company estimates that it needs 20,000 pieces of them annually. The company can purchase all of its needs from an external supplier at a price (21) dinars per piece. The company also estimates that there are additional costs in the case of overseas purchase of 3 dinars per piece, in exchange for shipping and checking the piece. The company can manufacture the piece (m) internally, and the following are the estimated costs for the process of manufacturing the quantity needed by the company, amounting to 20,000 pieces: Total amounts in dinars ? ? the details Amounts are per piece Direct materials 10 dinars / piece Direct wages 8 dinars /piece Industrial variable indirect 4 dinars / piece costs Indirect industrial costs fixed 5 dinars / piece ? ? ** If you know that 80% of the fixed costs can be avoided and saved in the event of buying from abroad
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