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Zion Manufacturing had always made its components in - house. However, Bryce Component Works had recently offered to supply one component, K 2 , at

Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $12 each. Zion uses 4,500 units of Component K2 each year. The cost per unit of this component is as follows:Direct materials$7.36Direct labor2.73Variable overhead1.52Fixed overhead2.00Total$13.61The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped.Required:1. What are the alternatives facing Zion Manufacturing with respect to production of Component K2?Check My Work1 more Check My Work uses remaining.Previous2. List the relevant costs for each alternative. If required, round your answers to the nearest cent.

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