Make-or-Buy Deaision 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 $13 each. Zion uses 4,600 units of Component K2 each year The cost per unit of this component is as follows Direct materials $7.95 2.4S 1.74 3.00 15.14 Direct labor Variable overhead Fored overhead Total The fixed overhead is an allocated of it would be eliminated i production of Component K2 stopped 1. What we the ernatives tacing Zion Marda turrng with respect to production of enorert Kr Hake the component in bouse or to y it frm Bryce 2. List the relevant costs for each atemative qured, round your answers to the nearest cent Oterential Cost t 5 6 8 9 ER T YU t shih CIV B NM IF logical tests 0S Mail - Mane, Sara C Special Order S https://v2 nt/takeAssignmentMando?invoker-assignments&takeAssignmer Show Me How Calculator Direct labor Variable overhead Fxed overhead 1.74 3.00 $15.14 Total The fixed overhead is an allocated expense; none of it would be eliminated d production of Component K2 stopped. Reqaired: 1. What are the alternatives facing Zion Manufacturing with respect to production of Component K27 Make the component in house or to buy it pm Bryce 2. List the relevant costs for each altemative. if required, round your answers to the nearest cent Total Relevant Cost per un Buy Differential Cost to Make f Zion decides to purchase the component from Dryce, by how much wil operating income increase or per unt decrease? i 3. Conceptual Connection: Which aternative is better? 3 more Chreck y Work uses emaining 5 6 7 8 9 ERTYIU