Practice Assessment 1 - Task 5 di

Becca270100 Registered Posts: 1 New contributor 🐸
Does anyone have any clue how they worked out the answers to part di in Task 5 of the AMAC practice assessment 1? Any help would be appreciated!!


  • kstephens
    kstephens Registered Posts: 1
    Scarce resource is still labour Soft uses 3 hours per unit Medium uses 2 hours Firm uses 2.5 hours
    The additional cost if bought in is Soft £6 (buy-in 55 less Variable cost if made in house is 49) Medium is £6 (54 - 48) and Firm is £5.50 (56 -50.50) Therefore additional cost per scarce resource is Soft £6/3hours = £2 Medium is £6/2hours = £3 and Firm is £5.50/2.5hours= £2.20 Therefore buy-in Soft (lowest additional cost per scarce resource to buy in)
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