Problem:
Ace corporation incurs a $9 per unit cost for product a, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, ACE can purchase Product B for $5 per unit and sellit for $12 per unit. If it does so, unit sales would remain unchanged and $5of the$9 per unit costs assigned to Product A would be eliminated. Should the company continue to manufacture Product A or purchase Product B for resale?
Note: Please describe comprehensively and provide step by step solution.