Required information

$[$The following information applies to the questions displayed below.$]$

Each of the following situations is independent:

Make or Buy Terry Incorporated manufactures machine parts for alrcraft engines. CEO Bucky Walters is considering an offer from a

subcontractor to provide $2,450$ units of product OP$89$ for $$213,150.$ If Terry does not purchase these parts from the subcontractor, it

must continue to produce them in$-$house with these costs:

Required:

What is the relevant cost per unlt to make the product Internally?

$2$ What is the estimated Increase or decrease in short$-$term operating profit of producing the product internally versus purchasing the

product from a supplier?

Complete this question by entering your answers in the tabs below.

Required $1$

What is the relevant cost per unit to make the product internally?