Question 3

Scenario 3: Make or Buy Decision Apple computer manufactures a part costing $6 for use in its earpods. Cost components are: materials, $3.00; labor, $1.50; fixed overhead costs, $1.05; and variable overhead costs, $0.45. Apple could purchase the part for $5.25. What should Apple do? Show your differential analysis to support your recommendation. What about the Opportunity Cost considerations