The Ayayai Company manufactures 5,600 units of a part that could be purchased from an outside supplier for $14 each. Ayayai's costs to manufacture each part are as follows:

Direct materials		$3
Direct labor		2
Variable manufacturing overhead		5
Fixed manufacturing overhead		9
Total		$19

All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.

(a-b)

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Your answer is correct.

(a) Calculate relevant cost to make.

Relevent cost to make

$enter relevent cost to make in dollars per unit per unit

(b) Should Ayayai continue to manufacture the part?

select an option NoYes

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Attempts: 1 of 3 used

(c-d)

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Your answer is partially correct.

(c) If Ayayai could lease the manufacturing facilities to another company for $25,600 per year, what would be the net total cost to outsource production of the part?

Net cost to buy

$enter the net cost to buy in dollars