LaSalle Manufacturing had always made its components in-house. However, Jasper Component Works had recently offered to supply one component, C-430, at a price of $12 each. LaSalle uses 4,800 units of Component C-430 each year. The cost per unit of this component is as follows: Direct materials $7.73 Direct labor 2.19 Variable overhead 1.28 Fixed overhead 3.00 Total $14.20 The fixed overhead is an allocated expense; none of it would be eliminated if production of Component C-430 stopped. Required: 1. List the relevant costs for each alternative. If required, round your answers to two decimal places. Total Relevant Cost Make $ per unit Buy $ per unit Differential Cost to Make $ per unit If LaSalle decides to purchase the component from Jasper, by how much will operating income increase or decrease? 2. Conceptual Connection: Which alternative is better