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Hi Sir,
I would like to ask you a question from BPP Rev Kit MCQ Bank 6 Q26.3.
I dont understand how could the answer is B instead of A.Thanks.
If they only bought 1,000 of Z externally, they would produce the other 3,000 internally which would cost them (3,000 x 10) + 7,000 = 37,000 to produce.
If instead they bought the other 3,000 externally it would cost them 3,000 x 12 = 36,000So it is cheaper to buy all 4,000 externally.
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