ABSTRACT
As the Chief Executive of Leader Lingerie Limited (LLL), John Leeder wonders if it makes sense to outsource his company’s production.
He is concerned about production costs especially variable and fixed manufacturing overheads as well as the operating or non-manufacturing cost base. Jessica Simmons, LLL’s Finance Director gives John the following figures:
John wonders what the total unit cost is for his fashion items and asks Jessica to work them out.
