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Sports Co Ltd also want to start making badminton racquets in a dedicated production facility with an estimated actual production capacity of 20,000 units per

Sports Co Ltd also want to start making badminton racquets in a dedicated production facility with an estimated actual production capacity of 20,000 units per annum. The costs of making the badminton racquets are shown in Table 2 below. The production facility will cost 120,000 per annum in fi xed costs. The purchase price of ready assembled badminton racquets from a trusted supplier is 42.00. Comment on the possibilities of buying in the badminton racquets.

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