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 4,400 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials $7.77 Direct labor 2.16 Variable overhead 1.13 Fixed overhead 3.00 Total $14.06 The fixed 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. Total Relevant Cost Make $fill in the blank 2 11.06 per unit Buy $fill in the blank 3 12.00 per unit Differential Cost to Make $fill in the blank 4 0.94 per unit If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? Decrease $fill in the blank 6 3. Conceptual Connection: Which alternative is better? Make