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CoursHeroTranscribedText: Q . 2 [M l I l l . J Company B makes four components W, X, Y and Z for which costs in the forthcoming year are expected to be as follows: W X Y Z Production (units) 1000 2000 4000 3000 Unit Marginal Costs: 5 5 $ 3 Direct Materials 4 5 2 4 Direct Labour 8 9 4 6 Variable Production Overheads 2 3 1 2 14 1'7 7 12 Directly attributable xed costs per annum and committed xed costs: 5 Incurred as a direct consequence of making W 1000 InCurred as a direct consequence of making X 5000 Incurred as a direct consequence of making Y 6000 Incurred as a direct consequence of making Z 8000 Other xed costs (committed) W 50000 A sub-contractor has offered to supply' units of W, X, Y and Z For $12, $21, $10 and $14 respectively. Required: Should Company B make or buy the components? Please explain
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