In determining the cost involved in fabricating sub-assembly B within a company, the following data have been gathered: Direct material – P0.30 per unit Direct labor – PO.50 per unit Testing set-up – P300.00 per set-up It is decided to subcontract the manufacturing of assembly B to an outside company. For an order of 100 units, what is the cost per unit that is acceptable to the company? *

In determining the cost involved in fabricating sub-assembly B within a company, the following data have been gathered: Direct material – P0.30 per unit Direct labor – PO.50 per unit Testing set-up – P300.00 per set-up It is decided to subcontract the manufacturing of assembly B to an outside company. For an order of 100 units, what is the cost per unit that is acceptable to the company? *

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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