Ayayai Racers makes bicycles. It has always purchased its bicycle tires from the Wildhorse Tires...
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Ayayai Racers makes bicycles. It has always purchased its bicycle tires from the Wildhorse Tires at $26 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials Direct labor Variable manufacturing overhead $8 $4 $7 The company's fixed expenses would increase by $70,000 per year if managers decided to make the tire. (a1) Calculate total relevant cost to make or buy if the company needs 11,000 tires a year. Make Buy $ $ Total relevant cost
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