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 $12 each. Zion uses 4,900 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials $7.50 Direct labor Vaciable overhead Fixed overhead Total 2.20 1.31 3.00 $14.10 The foxed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped, Required: 1. What are the alternatives facing Zion Manufacturing with respect to production of Component K2? Make the component in house or to buy it from Bryce 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. Make Buy Total Relevant Cost per unit per unit Differential Cost to Make per unit