Multiple Choice
Product X - Contribution £40 and uses 20 scarce machine hours. Component Y - used in manufacture of X, has a variable cost of £5 and uses 3 machine hours. Component y can be bought for £10. In determining whether to make or buy what is the relevant cost of making:
A) £10
B) £6
C) £11
D) £40
Correct Answer:
Verified
Correct Answer:
Verified
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