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  • Exercise 3: Darling Sdn. Bhd. Uses A Component, Silk, in Its Products. To Make

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    Izwan Jamaluddin
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    Darling Sdn. Bhd. can either make the component Silk internally, which would take 5 hours at a variable cost of RM15 per unit, or buy it from a supplier for RM20 each. Making Silk in-house would use a machine currently used to make product MOON, which takes 1 hour to make and has a marginal cost of RM5 and selling price of RM8. Darling must decide whether to make or buy the Silk component based on which option has lower costs.

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    Exercise 3

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    Darling Sdn. Bhd. can either make the component Silk internally, which would take 5 hours at a variable cost of RM15 per unit, or buy it from a supplier for RM20 each. Making Silk in-house would use a machine currently used to make product MOON, which takes 1 hour to make and has a marginal cost of RM5 and selling price of RM8. Darling must decide whether to make or buy the Silk component based on which option has lower costs.

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    14 views1 page

    Exercise 3: Darling Sdn. Bhd. Uses A Component, Silk, in Its Products. To Make

    Uploaded by

    Izwan Jamaluddin
    Darling Sdn. Bhd. can either make the component Silk internally, which would take 5 hours at a variable cost of RM15 per unit, or buy it from a supplier for RM20 each. Making Silk in-house would use a machine currently used to make product MOON, which takes 1 hour to make and has a marginal cost of RM5 and selling price of RM8. Darling must decide whether to make or buy the Silk component based on which option has lower costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Exercise 3

    Darling Sdn. Bhd. uses a component, Silk, in its products. To make


    the component internally would take 5 hour and would involve a
    variable cost of RM15. To manufacture the component would
    involve work on a machine that is being used to make product
    MOON. The product takes 1 hour to make and its marginal cost is
    RM5. The product’s selling price is RM8. An outside supplier has
    offered to supply the component Silk at RM20 each. Should
    Darling Sdn. Bhd. make or buy the component?

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