Use the following information to answer questions (5-8)

Amman Company plans to manufacture 200,000 units of product (X) in 80 units per batch.

Variable batch- level costs of 500 JD per batch.

Zaids Company produces product (X), offers to sell Amman 200,000 units for 52 JD per unit. The following are costs of manufacturing product (X):

Direct materials = 6,000,000 JD Direct manufacturing Labor = 1,600,000 JD Variable Manufacturing overhead costs = 1,000,000 JD Fixed salaries to support materials handling and setup = 150,000 JD Fixed manufacturing overhead costs of plant, lease, insurance and administration = 2,000,000 JD 5.The manufacturing cost per unit equals (2 Points)

53.75

53

53.2

60 6.The irrelevant cost is: (2 Points)

150,000

2,000,000

1,000,000

1,600,000 7.The cost of buying is: (2 Points)

8,400,000

10,400,000

12,000,000

12,400,000 8.The right decision is to: (2 Points)

Buy

Make