XOI makes headlamps and currently makes all the components of the headlamp. XOI is considering buying the battery component of the headlamp from an outside supplier for $7 + $.10 to ship each component

Direct materials: $1.20

Direct labor: $1.50

Overhead: $6.00

Of overhead, $4.00 of it is fixed and $2.00 of it is variable. The fixed cost of $4.00 includes $1 of depreciation cost for specialized equipment that has no salvage value and $3 that is related to a product managers salary. The product manager position would not exist if XOI bought the battery component. Prepare a chart below of all the differential costs. Should XOI make or buy the battery component? (round to one decimal place)

Total Unit Cost (Only Differential Costs):

Make:

Buy: