Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,300 units of product OP89 for $124,200. If Terry does not purchase these parts from the subcontractor, it must continue to produce them in-house with these costs:

Costs per Unit
Direct materials	$24
Direct labor	17
Variable overhead	15
Allocated fixed overhead	5

Calculate the relevant cost for producing the product.

Drirect materials

Direct labor

Variable overhead

Total

Calculate the additional cost or savings of producing the product internally versus purchasing the product externally, from a supplier..

Additional cost of producing internally

55200, 39100, 34500 are not the respective answers for part 1. Calculate carefully and show work