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Question 3 View Policies Current Attempt in Progress Blue Spruce Rides makes bicycles. It has always purchased its bicycle tires from the Balyo Tires at

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Question 3 View Policies Current Attempt in Progress Blue Spruce Rides makes bicycles. It has always purchased its bicycle tires from the Balyo Tires at $10 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials Direct labor Variable manufacturing overhead $3 $5 $2 The company's fixed expenses would increase by $28,910 per year if managers decided to make the tire. (a 1) Calculate total relevant cost to make or buy if the company needs 6,380 tires a year. Make Buy Total relevant cost $ (a2) Ignoring qualitative factors, if the company needs 6,380 tires a year, should it continue to purchase them from Balyo or begin to produce them internally? The company to purchase the tires

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