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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