Question $2$

BiM $($Pty$)$ itd manufactures component PEK and the costs for the current production level of $150,000$

units are

prod Reouction camacity utilized at present would be unused.

a Aurred.

a Assuming all other factors are constant, should PEK be manufactured internally or bought from the outside supplier?

b$.$ What other qualitative factors should be considered? $(15$ marks$)(5$ marks$)$