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QUESTION 2 The Bruxton Magic Company needs 15,000 units of a certain part to use in its production cycle. If Braxton Magic buys the part

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QUESTION 2 The Bruxton Magic Company needs 15,000 units of a certain part to use in its production cycle. If Braxton Magic buys the part from Laface Parts Company instead of making it, Magic could not use the part manufacturing facilities in another activity, thus all of the fixed overhead applied will continue regardless of what decision is made. If Braxton Magic buys the part, the space in the plant can be used to generate $21,000 of additional revenues. Accounting records provide the following data: Cost Magic to make the part: Direct materials per unit Direct labor per unit Variable factory overhead per unit Total fixed factory overhead $195,000 Cost per unit to buy the part from the Laface Company Instructions: Answer the following questions. Round each answer to the nearest dollar 1. What is the total relevant cost to make the part? 2. What is the total relevant cost to buy the part? 3. Based on cost, should the company make or buy the part? Type the work "Make" or "Buy only

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