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In part b of the qs,deciding on the outsourcing option,why have they only calculated the contributions to be gained from the in house production?cz i think that the outsourced product will also bring in some contribution so why not compare all products’ contribution to the overhead costs?
Thanks
Have a look here:
https://www.accaglobal.com/content/dam/acca/global/pdf/sa_nov11_outsourcing.pdf
The article covers the outsourcing option for this question and is more clearly set out.
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