You are given the following data relating to bought-out prices and the cost of production of undernoted items. Prepare a suitable statement showing which items should be purchased from outside giving ranks in order of preference for buying, assuming (a) there is no constraint or key factor; (b) machine hours is a key factor; and (c) labour hours is a key factor.
| Item A Don't use plagiarized sources. Get Your Custom Essay on you are given the following data relating to bought out prices and the cost of produ 608742 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | Item 8 | Item C | |
| Purchase price per unit | 30 | 40 | 50 |
| Variable cost per unit | 18 | 48 | 34 |
| Fixed cost per unit | 6 | 10 | 14 |
| Production per machine hour | 1 | 2 | 1.50 |
| Labour hours required per unit | 2 | 1 | 4 |
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