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? *
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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