Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,000 units of product OP89 for $120,000. If Terry does not purchase these parts from the subcontractor, it must continue to produce them in-house with these costs: Direct materials Direct labor Variable overhead Allocated fixed overhead Cost per Unit $ 28 18 16 4 Required: 1. What is the relevant cost per unit to make the product internally? 2. What is the estimated increase or decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Show less A Required 1 Required 2 What is the relevant cost per unit to make the product internally? Relevant Cost Per Unit Direct materials $ 28 18 Direct labor Variable overhead 16 Total relevant cost $ 62 Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,000 units of product OP89 for $120,000. If Terry does not purchase these parts from the subcontractor, it must continue to produce them in-house with these costs: Direct materials Direct labor Variable overhead Allocated fixed overhead Cost per Unit $ 28 18 16 4 Required: 1. What is the relevant cost per unit to make the product internally? 2. What is the estimated increase or decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Show less Required 1 Required 2 What is the estimated increase or decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier? Decrease $ 7,200