Question

14. The XYZ Ltd., produces a variety of products each having a number of component parts. Product B takes 5 hours to produce on a machine No:99 working at full capacity. B has a selling price of Rs. 50 and a marginal cost of Rs. 30 per unit. A-10 a component part could be made, on the same machine in 2 hours, for a marginal cost of Rs. 5 per unit. The supplier’s price is Rs. 12.50 per unit. Should the Company make or buy

Answer 1

Answer:

12.50 per unit its correct