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August 22, 2021 at 4:58 pm
In question 3, I didn’t quite understand why the marginal cost is 100 and not 80?
November 24, 2021 at 10:52 pm
As you are looking to transfer product Y to another department, therefore you would use the marginal cost of product Y, not X.
May 21, 2021 at 5:15 am
In question 2, why is the buying cost of $350 must be subtracted with marginal cost of $240?
John Moffat says
May 21, 2021 at 9:16 am
Because if Q buys from outside they will pay 350 and P will no longer be making it which will save costs of 240. So it will be costing the company an extra 110.
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