2. The estimated costs of producing 10,000 units of a component NBH are: Cost per unit...

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2. The estimated costs of producing 10,000 units of a component NBH are: Cost per unit Total (RM) (RM) Direct material 15 150,000 Direct labour 9 90,000 Variable factory overheads 7 70,000 31 310,000 The same component can be purchased from the open market at a price of RM29 per unit. Machine capacity is at an annual fixed cost of RM15,000 Required: Advise the company on whether to make or buy component NBH. 2. The estimated costs of producing 10,000 units of a component NBH are: Cost per unit Total (RM) (RM) Direct material 15 150,000 Direct labour 9 90,000 Variable factory overheads 7 70,000 31 310,000 The same component can be purchased from the open market at a price of RM29 per unit. Machine capacity is at an annual fixed cost of RM15,000 Required: Advise the company on whether to make or buy component NBH.