Tutorial: Short Term Decision Making Blossom Flower Sdn Bhd is a manufacturing company producing artificial flowers. Currently, the company makes two types of flower petals namely Rose and Lily. The budgeted production costs per annum in making the petals are as follows: All direct labours are paid at RM10 per hour. Total budgeted fixed production overheads are RM54,000 and variable overheads are absorbed based on direct labour hour. Outside supplier has offered flower petals of Rose and Lily at purchase price of RM0.50 per unit each. The following information should be considered if the management decides to purchase instead of manufacture the petals. i. The company needs to bear the cost of transportation charges and quality checking of RM0.10 per unit and RM1.00 per unit respectively. ii. Fixed overhead costs will be reduced by the amount as follows: Rose RM20,000 Lily RM6,000 Required: For each of Rose and Lily petals, determine whether the company should buy or make each of it. (Support your decision with relevant calculations)