Solution-Should western styles make or buy their range of

Should western styles make or buy their range of denim jeans

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Reference no: EM132802197

Question - Western Styles Ltd currently design and manufacture their own range of denim jeans. The cost details for their latest range are as follows:

Direct Materials	$450,000
Direct Labour	$200,000
Variable Overhead	$150,000
Fixed Overhead	$250,000
Total Manufacturing Cost	$1,050,000

Quantity Produced	35,000 pairs of jeans
Cost per pair of jeans	$30

An external specialist manufacturer has offered to supply a similar range of jeans for $19.50 per unit.

Required -

[1] Should Western Styles Ltd make or buy their range of denim jeans? Show all calculations.

[2] Identify 3 other factors that should be taken into consideration when deciding to make or buy.

Reference no: EM132802197

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Should western styles make or buy their range of denim jeans

Reference no: EM132802197

Reference no: EM132802197

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