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 $7.14 Direct labour 2.49 Variable overhead Fixed overhead 1.92 3.00 Total $14.55 The 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? The input in the box below will not be graded, but may be reviewed and considered by your instructor. 2. List the relevant costs for each alternative. If required, round your answers to two decimal places. Total Relevant Cost per unit Make Buy per unit Differential Cost to Make $ per unit If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? 3. Conceptual Connection: Which alternative is better