Question: A company produces three components on the same machine. The components are used i the manufacture of a finished product. The budget for next

A company produces three components on the same machine. The components are used i the manufacture of a finished product. The budget for next year indicates a requirement for 3,000 units of each component, but only 60,000 hours of machine time will be available. Additional components can be purchased from an external supplier to meet any production shortfall. Component A B Machine hours per unit 9 LO 5 12 Variable production cost per unit $ per unit 45 70 56 Purchase price from external supplier $ per unit 65 78 80 What is the minimum total variable cost at which the 3,000 units of all three components can be obtained? O $537,000 $543,000 $549,000 $553,000 O
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Problem Analysis We are given Each of the three components A B C requires 3000 units Total machine t... View full answer
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