Make$-$or$-$Buy Decision

Zion Manufacturing had always made its components in$-$house. However, Bryce Component Works had recently offered to supply one component, $K2,$ at a price of uses $4,400$ units of Component $K2$ each year. The cost per unit of this component is as follows:

$\backslash$table$[[$Direct materials,$$7\mathrm{.}54$