Question

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Subject test
Note:
You are attempting question 90
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
OA
ОВ
Oc
OD
Submit​

Answer 1

Answer:

what ??????

Explanation:

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Answer 2

Answer:

c) Process B

Explanation:

a) $27*2500=$67500

b) $20*2500+$15000=$65000

c) $15*2500+$25000=$62500

Comparing all the three c) is better with future aspects as well