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Should Gemini make or buy siomai

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Question - A corporation is known for selling a great tasting yet very affordable Sharks' Fin in Singapore Information on selling price and related costs of one complete order is shown below. Fixed costs 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 P8

Direct labor P5

Variable overhead P3

Fixed costs allocated to products per order

Supervisory salaries P5

Other fixed cost P5

Required - If B Corporation has offered to buy siomai for P3.50 per piece, on normal operations, should Gemini make or buy siomai?

Reference no: EM132882384

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