Hi need words justification of what will happen without any
Hi need words justification of what will happen without any calculation for only part C and D as shown below (thanks in advance)
>Solution
c) Skycell can use third party, if third party producing for $35 or $36 but for skycell one unit cost of producing is $5.05(wages+ premium +30 euros converted to dollars=$32.40, carrying cost inventory =$3.24(1 euro =$1.08)
Per unit =$5.05+$32.40+$3.24=$40.69
It is saving to our nearby $4 to $5 per unit.
d) Though Skycell have Profit, even it is use third party it can save more, why the company loses ite extra profit.

