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Topic: Differential Cost Analysis A. Make or Buy Decision - 10 points Netflix Company manufactures 5,000 timers a month that it uses in producing oven-toasters.
Topic: Differential Cost Analysis A. Make or Buy Decision - 10 points Netflix Company manufactures 5,000 timers a month that it uses in producing oven-toasters. Production costs for each timer are as follows: Materials, P 50 Labor, 40 Variable Overhead, 30 Fixed Overhead, (based on P5,000 timers) 36 Total P156 The company is considering to purchase the timers from a well-known timing control manufacturerfor P130 per unit. If the timers are purchased, the factory space currently used to produce the timers can be used as a warehouse, this reducing warehouse rental by P10,000 a month. Should Netflix Company continue to make the timers or just buy them from outside supplier
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