Make$-$or$-$Buy Decision, Alternatives, Relevant Costs

Required:

What are the alternatives for Giada Company?

Make the part in house or buy the part externally

Assume that none of the fixed cost is avoidable. List the relevant cost$($s$)$ of internal production.

Direct materials, direct labor and variable overhead $$

List the relevant cost$($s$)$ of external purchase.

Purchase price $$

Which alternative is more cost effective and by how much?

Making the part in house $$ by $

and by how much?

Buying the part from the external supplier $$ by $