The Following Information Relates to Component AHB2 Manufactured by Aquarius

question 47

Essay

The following information relates to component AHB2 manufactured by Aquarius Electronics. $$\begin{array} { l l l } \text { Internal Manufacturing cost: } & \text { Direct materials } & \$ 30 \\\text { (per unit) }& \text { Direct labour } & \text { 18 } \\& \text { Variable manufacturing overhead } & 9 \\& \text { Fixed manufacturing overhead } & \underline { 17 } \\& & \underline { 74 }\end{array}$$ $\text { External acquisition price (per unit) }\quad\quad\$54$ 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?

• 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?

---

Definitions:

Alfred Kinsey

An American biologist and sexologist who is known for his research on human sexuality in the mid-20th century, notably the Kinsey Reports.

Conservative Groups

Organizations or factions holding traditional values and beliefs, often promoting the preservation of established institutions and resistance to rapid change.

Masturbation

is the self-stimulation of the genitals to achieve sexual pleasure.

Alfred C. Kinsey

A biologist and sexologist from the United States who established the Institute for Sex Research at Indiana University, famed for his contributions to the study of human sexuality.