How much profit will they make?

Question

Strauss PLC produces 17,000 cricket bats per year. At this level of output the costs per unit are as follows:

£

Raw materials 17

Direct labour 25

Variable overhead 3

General fixed overhead 10

The company has the opportunity to buy in the cricket bats from Trescothick PLC at £50each. These will be of identical quality. This will result in savings in fixed costs of £50,000. If Strauss buys in the bats then purely on financial grounds how much will they make or loose?

Answer 1

Do your own homework!

Answer 2

My diploma is already hanging on the wall. Sorry, but I'm done taking tests! Good luck!

Answer 3

knowing those pair of chancers 0 for 2 ,all out good night