A department makes a product whose contribution per unit is 1,200 and which takes 60 hours of
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A department makes a product whose contribution per unit is 1,200 and which takes 60 hours of machine time. A component used in this product incurs a marginal cost of 250 (taking 8 hours of machine time). The department is working at full capacity. An external supplier has offered to supply the component at a price of 400 per component. What is your advice to the department?
Related Book For
Automation Production Systems and Computer Integrated Manufacturing
ISBN: 978-0132393218
3rd edition
Authors: Mikell P.Groover
Posted Date: