L Ltd can subcontract out one of its components at $18 each. The business can produce the component internally for a variable cost of $14 per unit. In addition fixed costs have been allocated to components at $5 per component. L Ltd has spare capacity. 

Should it make the component internally or contract it out?

Answer rating: 100% (QA)

SOLUTION o determine whether L Ltd should make the component internally or contract it out we need t... View the full answer