Use relevant costing to analyse the situation for a “Make or Buy” decision for the three-year period. Please include an explanation of why you have or have not included costs.
a) From a financial viewpoint, should the company continue to make the packaging boxes internally or outsource it? Why?
b) Critically discuss other quantitative or qualitative aspects that you believe the Funky Fruit Company should consider before their final decision?
c) Discuss the significance of the company’s decision to outsource or not, in terms of its potential impact on operating leverage.
