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Determine the indifference point

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Reference no: EM132916479

Question - Jam Foods Corporation is known for selling a great tasting yet very affordable Shark's Fin in Manila. Information on selling price and related costs of one complete order is shown below., Fixed cost is computed using the normal operations of 3,000 orders (six pieces per order).

Selling price per order P40

Variable cost per order

Direct materials 8

Direct labor 5

Variable overhead 3

Fixed cost allocated to products per order

Supervisory salaries 5

Other fixed cost 5

Required -

-Determine the indifference point.

-If Jam plans to sell 2,500 orders, should the company make or buy siomai?

Reference no: EM132916479

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