Calculate whether component P should be purchased or manufactured internally
during the next 10 weeks. [14 marks]
b. Prepare a statement to show the optimum weekly usage of the West factory’s
available resources. [3 marks]
c. (i) Assuming no other changes, calculate the purchase price of the component Pat which your advice in part (a) above would change. [4 marks]
(ii) Explain TWO non-financial factors that should be considered before deciding whether or not to manufacture the component internally. [4 marks]
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