1. Business
  2. Accounting
  3. make or buy blunt ltd produces a component for inclusion...

Question: make or buy blunt ltd produces a component for inclusion...

Question details
  1. (Make or Buy) Blunt Ltd produces a component for inclusion in its pocket calculator. The full absorption costs of production, based on an output level of 50,000 units are:

Materials
Labour
Variable overheads Fixed overheads Total cost

   50p
   25p
   35p
   70p

£ 1.80

A new supplier of electronic components is currently offering to supply an identical part for £1.55.

Should Blunt make or buy the component?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution