Exercise 8-9 Ayayai Rides makes bicycles. It has always purchased its bicycle tires from the Balyo Tires at $12 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials Direct labor Variable manufacturing ovhad $1 The company's fixed expenses would increase by $30,000 per year if managers decided to make the tire. (a1) Calculate total relevant cost to make or buy if the company needs 6,470 tires a year. $3 $4 Make Buy Total relevant cost $ (a2) Ignoring qualitative factors, if the company needs 6,470 tires a year, should it continue to purchase them from Balyo or begin to produce them internally? The company to purchase the tires