Question

Consider the following information:
A Company needs 2500 units of Product X in the next month. The company has
three options. First one is to use subcontracting and source the product at the rate
of $27 per unit. Second one is to manufacture using process A having fixed cost
$15,000 and variable cost $20. Third option is to manufacture using process B
having fixed cost $25,000 and variable cost $15 per unit. The company should
select which of the following options?
a) Subcontracting
b) Process A
c) Process B
d) Data insufficient to answer the question, sales price is required.​

Answer 1

Answer:

kilometres

Explanation:

kilometres=1000 meters

Answer 2

Answer:

c) Process B

Explanation:

That will cost least to the Company