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John Moffat.
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Shi2004
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Hello sir i have a question on the make or buy. I know how to do the calculations but i don’t understand the explanation provided in the book. I Don’t understand why the answer is B ( 4000 unit of Y and 4000 unit of Z) can you please explain??
John Moffat
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The problem is that the directly attributable fixed costs are only saved if they make none of the particular product. So even if they were just making only 1 of a particular product, they would then incur all of the directly attributable fixed costs for that product.
Shi2004
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