Question: 8. Jason Ltd. uses three components in its manufacturing process. Currently the three components are manufactured in-house, costs per unit are shown below: Component Component

8. Jason Ltd. uses three components in its manufacturing process. Currently the three components are manufactured in-house, costs per unit are shown below: Component Component Component A B C Variable cost 25 80 50 Assigned fixed cost 20 80 37.5 The purchasing manager has confirmed that the components can be bought in from an external supplier at the following prices: Component A 40, Component B 70 and Component C 55. Which component(s), if any, should Jason Ltd. buy in? (a) Buy in all three components (b) Do not buy any (c) Buy in A and C (d) Buy in B only

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