Topic 11: Relevant Cost for Decision Making Security Component Berhad (SCB) manufactures a type of component namely KC2 that is used to produce safety alarm. Cost of producing 10,000 KC2 units are as follows: Cost per unit Direct material Direct labour Variable production overhead Fixed production overhead Total RM 4 10 8 9 31 Firma Lok has offered to supply 10,000 units of KC2 components to SCB at RM 30. If SCB accepts this offer, plant facilities and equipment can be used to manufacture other component with a cost saving of RM45,000. Other than that, fixed manufacturing overhead cost of RM5 per unit can be avoided. b REQUIRED: Calculate relevant cost per unit for component KC2. State which alternative SCB should choose, whether to make or buy component KC2. (show the calculation as a prove) a. b