Question: AA processing Company is considering whether to make 2,000 units of product A which costs Php 16.00 a unit or buy it from outside for

AA processing Company is considering whether to make 2,000 units of product A which costs Php 16.00 a unit or buy it from outside for Php 15.00 a unit. A further analysis shows that if product A is outsourced, fixed costs of Php 8,000.00 attributable to this product will be reduced by 25%. Should the Company make or buy?

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