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Make-or-buy Decision, Altematives, Relevant Costs Each year, basu Company produces 15,000 units of a component used in microwave ovens. An outside supplier has offered to

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Make-or-buy Decision, Altematives, Relevant Costs Each year, basu Company produces 15,000 units of a component used in microwave ovens. An outside supplier has offered to supply the part for 51.16 . The unit cost is: Required: 1. What are the aiternatives for Basu Company? 2. Assume that none of the fixed cost is avoidable. Uist the relevant cost(s) of inkernal production. List the relevant cost(s) of external purchase. 3. Which alternative is more cost effective and by how much? by5 4. What if $20,120 of fixed overhesd is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? by s

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