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1. The retailer is stuck with 2,000 unsold T-shirts from a basketball team that lost early in the playoffs. The retailer can either rework the shirts for P50 each and sell for P200, or sell as is for P90 each to a wholesaler. 2. A plastics manufacturer is deciding whether to make or buy a part internally. Making the part costs P75 per unit while buying costs P65 per unit, assuming all internal costs are avoidable. If fixed overhead is unavoidable, the opportunity cost of buying must be considered. 3. A c

Author

Ahga Moon

Language

EN