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variable production cost per unit $A=70 ,B=70 ,C=75 ,D=85
purchase price per unit from another supplier $A=108 ,B=130 ,C=120 ,D=124
skilled labour hours per unit to manufacture A=4 ,B=6 C=5 ,D=3
as it has insufficient skilled labour hours available to manufacture all the components required , the company will need to buy some units of one component from the other supplier.
which component should be purchased from the other supplier?
This is not examinable in Paper F2 – it is Paper F5.
okay.thank you.
You are welcome 🙂