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begin{tabular}{|c|c|c|} hline Company Data & Per Unit & Total hline Direct Materials & 14 & $210,000 hline Direct Labor & 10 & $150,000

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\begin{tabular}{|c|c|c|} \hline Company Data & Per Unit & Total \\ \hline Direct Materials & 14 & $210,000 \\ \hline Direct Labor & 10 & $150,000 \\ \hline Variable OH & 3 & 45,000 \\ \hline Fixed OH Tracible (Sup Salaries & 2 & 30,000 \\ \hline Fixed OH Tracible (Depreciation) & 4 & S 60,000 \\ \hline Fixed OH Allocated & 9 & $135,000 \\ \hline Total Cost & 42 & 5630,000 \\ \hline Units produced per year & & 15,000 \\ \hline \end{tabular} Instead of producing the product, you can just purchase it from an outside supplier for \$35/unit 1 Perform an differential Analysis on whether to make or buy Relevant Costs Make Buy Diff Analysis (Buy) Direct Materials Direct Labor Variable OH Fixed OH Tracible (Sup Salaries Purchase Price if Buy Incremental Profit (toss) Decision 2 Same data as above but now if you outsource, you can make a new product with a margin of $150,000 annually. $150,000 Relevant Costs \begin{tabular}{l|l} Make Buy & Diff Analysis (Buy) \end{tabular} Direct Materials Direct Labor Variable OH Fixed OH Tracible (Sup Salaries Purchase Price if Buy Opportunity Cost Incremental Profit (Loss) Decision

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