Question: a) b) c) The project manager has established that to make 1000 conductors the following costs will be incurred, Direct materials R70,000, Direct Labour R26,000,

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The project manager has established that to make 1000 conductors the following costs will be incurred, Direct materials R70,000, Direct Labour R26,000, Variable and Fixed overheads R15,000 each respectively. The project manager can purchase the 1,000 conductors externally for R125,000. The avoidable fixed costs are R5,000 if the units are purchased externally. What are the cost savings if the project manager makes the conductors? A. R1,000 B. R5,000 C. R10,000 D. R4,000 It was fortunate that the project budget included contingency funding; the top manager had not foreseen that the project would need the services of their elite slide rule squad in more than one area at the same time. Design couldn't complete their work without their services, nor could marketing, or production. Contingency funds came in handy to meet the unanticipated: A. Change in project scope. B. Abnormal project conditions. C. Consequences of Murphy's Law. D. Interaction costs. Ncube Ltd is considering buying a machine and has presented the following information; Calculate Internal Rate nf Return A. 19% B. 14.2% C. 10.14% D. 9.4%Step by Step Solution
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