BB Limited makes three components S, T and U The following costs have been recorded Another company has offered to supply the com ponents to BB Limited at the following prices Component Component Component S T U Unit cost Unit cost Unit cost () () () Variable cost 2 50 8 00 5 00 Fixed cost 2 00 8 30 3 75 Total cost 4 50 16 30 8 75

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Question: BB Limited makes three components: S, T and U. The following costs have been recorded: Another company has offered to supply the com- ponents to

BB Limited makes three components: S, T and U. The following costs have been recorded:

Component Component Component S T U Unit cost Unit cost Unit cost

Another company has offered to supply the com- ponents to BB Limited at the following prices:

() () () Variable cost 2.50 8.00 5.00 Fixed cost 2.00 8.30

Component Component Component S T U Unit cost Unit cost Unit cost () () () Variable cost 2.50 8.00 5.00 Fixed cost 2.00 8.30 3.75 Total cost 4.50 16.30 8.75

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