Ragemark Company produces 15,000 units of a component used in freezer. An outside supplier has offered to supply the part for $1.42. The unit cost is:

Direct material	$0.55
Direct labour	0.2
Variable overhead	0.1
Fixed overhead	2.45
Total unit cost	$3.30

Required:

1. What are the alternatives for Ragemark Company?

2. Assume that none of the xed cost is avoidable. List the relevant cost(s) of internal production and of external purchase.

3. Which alternative is more cost effective and by how much?

Can you please provide me the answer as fast as you can please