1. AA processing Company is considering whether to make 2,000 units of product A which costs Php 16.00 a unit or buy it from outside for Php 15.00 a unit. A further analysis shows that if product A is outsourced, fixed costs of Php 8,000.00 attributable to this product will be reduced by 25%.

Should the Company make or buy?

Please show the solution.

2. Please refer to image. Please show the solution.

Not yet answered Question 3 Marked out of 5.00 00 Inc produces two products from a joint process. Information about the two joint products follows: Product X Product Y Anticipated production 2,000 lbs 4,000 lbs Selling per price per pound at split-off 30 Additional processing costs/point after split 15 off Selling price/pound after further processing 40 The Joint Cost is P85,000. Select one: Product X should be process further, Y should be sold at split off point. Product X and Y should be sold at split-off point. Product Y should be process further, X should be sold at split off point. Product X and Y should be processed further. 16 30 50 O O O O