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son 18 ye ked out of 2 Flag Question 3.00 Erongo cc is considering whether to continue making a component or to buy it from
son 18 ye ked out of 2 Flag Question 3.00 Erongo cc is considering whether to continue making a component or to buy it from an outside supplier It uses 12.000 of the components each year. The internal manufacturing cost comprises NS/unit Direct materials Direct labour 4.00 Variable overhead 1.00 Specific fixed cost 3.00 Other foved costs 2.00 13.00 of the direct labour were not used to manufacture the component it would be used to increase the production of another item for which there is unlimited demand. This other item has a contribution of N$10.00 per unit but requires N$8.00 of labour per unit What is the maximum price per component, at which buying is preferable to internal manufacture? NB: Do not include the NS sign in your
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