Structuring a Make-or-Buy Problem Coed Scents, a national producer of young adult perfumes and colognes, needs to determine if it would be cheaper to produce 100,000 bottles of its most popular perfume, Two AM, for sale in its college town shops or to purchase them from an outside supplier for $25 each. Cost information on internal production includes the following: Total Cost Unit Cost $ 20.00 Direct materials $2,000,000 Direct labor 350,000 3.50 Variable manufacturing overhead 1.50 150,000 Variable marketing overhead 250,000 2.50 300,000 3.00 Fixed plant overhead $30.50 $3,050,000 Total Fixed overhead will connue whether Two AM is produced internally or extemally. No additional costs of purchasing will be incurred beyond the purchase price. Required: 1. What are the alternatives for Coed Scents? 2. List the relevant cost(s) of internal production and of external purchase. 12:47 PM V