Question: Problem 6 (5 marks) P.44 Jane's Jars Ltd. currently makes one type of decorative jar which it sells to other companies for packaging. Current output

Problem 6 (5 marks) P.44 Jane's Jars Ltd.
Problem 6 (5 marks) P.44 Jane's Jars Ltd. currently makes one type of decorative jar which it sells to other companies for packaging. Current output is 100,000 jars per year. An outside supplier has offered to supply all of the needed decorative jars for $.45 per jar. A cost analysis revealed the following unit costs for the decorative jars: Direct materials $.25 Direct labor 03 Other variable manufacturing costs 10 Fixed manufacturing costs 12 Fixed non-manufacturing costs .30 Total cost per jar $.80 Required: a. (3 marks) Should the company accept the offer? b. (2 marks) What additional issues might the senior management consider

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