The Following Information Relates to Component AHB2 Manufactured by Aquarius

question 40

Essay

The following information relates to component AHB2 manufactured by Aquarius Electronics. $$\begin{array} { l l r } \text { Internal Manufacturing cost: } & \text { Direct materials } & \$ 30 \\\text { (per unit) } & \text { Direct labour } & 18 \\& \text { Variable manufacturing overhead } & 9 \\& \text { Fixed manufacturing overhead } & \underline { 17 } \\&& \underline { 74 } \\& \\\text { External acquisition price (per unit) } & & \$ 54\end{array}$$ REQUIRED:
a)Based on the financial data presented, should Aquarius continue to manufacture the part or source it from the external supplier?
b)What other factors need to be taken into account?

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Definitions:

Continue

In computing, it often means to proceed with the next set of instructions or to keep an operation going.

Back Up Database

The process of creating a copy of a database's data to protect against loss or corruption.

Make A Backup

The process of creating a copy of data stored on a device or system to prevent loss in the case of failure or damage.

Package And Sign

Refers to the process of bundling and digitally signing software or documents to verify the authenticity and integrity of the content.