1) options are increase or decrease

2) which alternative is better...Make the componet in the house or Purchase the componet from Bryce?

3) fill in the sentence with either more, less or equally

4) CONCEPTUAL CONNECTION: By how much would the per-unit relevant fixed cost have to decrease before Zion would be indifferent (i.e., incur the same cost) between making versus purchasing the component? If necessary, round your answer to two decimal places.

Make-or-Buy Decision Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $26 each. Zion uses 10,500 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials Direct labor Varlable overhead Fixed overhead Total $12.00 8.25 4.50 2.00 $26.75 Assume that 75% of Zion Manufacturing's fixed overhead for component K2 would be eliminated if that component were no longer produced Required: 1. CONCEPTUAL CONNECTION: If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? Which alternative is better? 2. CONCEPTUAL CONNECTION: Briefly explain how increasing or decreasing the 75% figure affects Zion's final decision to make or purchase the component. As the percentage of avoidable fixed cost increases (above 75%), total relevant costs of making the component increase, causing the "purchase" decision to be the percentage was 75%. In other words, as the percentage increases, difference between the "purchase" and "make" options increases resulting in the"purchase" decision being even avoidable fixed costs decreases, the "make" option eventually is relevant costs of making the component decrease, the 3. CONCEPTUAL CONNECTION: By how much would the per-unit relevant fixed cost have to decrease before Zion would be indifferent (i.e, incur the same cost) between "making versus "purchasing" the component? If necessary, round your answer to two decimal places inancially appealing (compared to the "make" option) than it was when attractive. Alternatively, as the percentage of appealing financially as the "purchase" option. Finally, as the percentage of avoidable fixed cost decreases low enough and the total costly and option becomes the more financially appealing option