Question

A machine manufactures 10,000 units of a part at a total cost of Rs 21.00 of which Rs 18.00 is variable. This part is readily available in the market at Rs 19.00 per unit. If the part is purchased from the market then the machine can either be utilized to manufacture a component in same quantity contributing Rs 2.00 per component or it can be hired out at Rs 21,000. Recommend which of the alternatives are profitable?

Answer 1

Answer:

it can be  hired

Explanation: