A. What is the relevant cost of the make alternative?

B. What is the relevant cost of the buy alternative?

C. Should wooden treasures make or buy the mirrors?

D. If the supplier raises the price of the mirrors to $3.50 per mirror should wooden treasures make or buy the mirror?

E. Refer to part (D). If I wouldnt treasures can rent the space needed for producing the mirrors to another company for $20,000, should it make or buy the mirrors?

F. What qualitative factors (non-financial factors) should wooden treasures consider before making this decision?

lonal workinn purchased, the old comut epreciation on these comnuto Differential Analysis-Review 1. W ooden Treasures manufactures a variety of wooden accessories. One item produced is a iror with a decorative wooden frame. Wooden Treasures currently makes the mirrors but is considering the possibility of purchasing the mirrors from an outside supplier for $3.30 per mirror. Manufacturing costs per unit for the wooden frame and mirror for 50,000 units are as follows: Direct materials Direct labor Unit-related overhead Batch-related overhead $5.00 3.50 2.00 25,000.00 The facility-sustaining overhead of $32,000 is allocated to each product line produced by the company based on relative sales in dollars. Batch-related overhead consists of 50 production runs. Each production run consists of 1,000 units and costs $500 per run. If Wooden Treasures decides to purchase 50,000 mirrors, the cost of each production run will drop to $350 per run. In addition it is estimated that direct materials, direct labor, and unit-related overhead will decrease by 50%, 10%, and 20% respectively. a. What is the relevant cost of the "make" alternative? b. What is the relevant cost of the "buy" alternative? c. Should Wooden Treasures make or buy the mirrors? d. If the supplier raises the price of the mirrors to $3.50 per mirror, should Wooden e. Refer to part (d). If Wooden Treasures can rent the space needed for producing the f. What qualitative factors (nonfinancial factors) should Wooden Treasures consider before Treasures make or buy the mirrors? mirrors to another company for $20,000, should it make or buy the mirrors? making this decision