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Assume a company is deciding between manufacturing a part in-house that costs $540 per unit including costs as given in the table below. The same
Assume a company is deciding between manufacturing a part in-house that costs $540 per unit including costs as given in the table below. The same part is available in the market at $410 per unit. a. Fill in the table below and identify whether the following costs are Relevant or Irrelevant in this decision making. (32 points) Buy Relevant/Irrelevant Costs Direct Material Make 140 Direct Labor 180 Variable Overhead 100 Fixed Overhead 50 Depreciation 60 Utilities (allocated) 10 Cost of Purchasing 0 eric n Collese of the Midde East, 2020 Total Cost 540 b. Should the company buy the part from an outside supplier? Why? (8 points)
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