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Teich Inc. is considering whether to continue to make a componentorto buy itfrom an outside supplier The company uses 1i.700 of the components each year. The unit product cost ofthe component according to the company's absorption cost accounting system is given as follows: Direct materials $7.50 Direct labor 4.50 Varla Die manufacturing overhead 0.30 Fboed manufacturlng overhead 2.30 Unit prod not cost $14.60 Assume that direct labor a variable cost Of the Iii-red manufacturing overhead. 30% is avoidable ifthe component were bought from the outside supplier; the remainder is not avoidable. ln addition. making the component uses 2 minutes on the machine that is the company's current constraint. lfthe component were bought, time would be freed up for use on another product that requires 4 minutes on this machine and that has a contribution margin of $3.90 per unit. When deciding whether to make or buy the com ponent, what cIst of making the component sthld be cImpared to the price of buying the component? [Round y0ur Intermediate calculations and nal answer to 2 decimal places.) 0 $I4.94 per unit 0 SIZE-IS per unit 0 $6.25 per unit 0 $6.55 per unit