Fixed overhead will continue whether the ingredient is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price Required: 1. What are the alternatives for Fresh Foods? Make the ingredient in house or buy it externally. 2. List the relevant cost(s) of internal production and of external purchase. 3. Which alternative is more cost effective? Make the ingredient in-house By how much? 4. Now assume that 20% of the fixed overhead can be avoided if the ingredient is purchased externally. Which alternative is more cost effective? By how much? Structuring a Make-or-Buy Problem outside supplier for $25 each. Cost information on internal production includes the following: Fixed overhead will continue whether Two AM is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price. Required: 1. What are the alternatives for Coed Scents? Make Two AM in-house or buy it externally. 2. List the relevant cost(s) of internal production and of external purchase. Make-direct material, direct labor and variable overhead; Buy- purchase price 3. Which alternative is more cost effective? By how much? $ it will need to spend $350,000 to manage intellectual property theft of its Two AM brand by competitors operating in the country where the outsourced production occurs. Which alternative is more cost effective? By how much