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Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Giada Company produces 13,000 units of a component part used in tablet computers. An outside supplier has offered
Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Giada Company produces 13,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.33. The unit cost is: 1. What are the alternatives for Giada Company? Make the part in house or buy the part externally 2. 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. 3. Which alternative is more cost effective and by how much? by $ by $
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