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Make-or-Bty Decision, Aiternatives, Relevant Costs Each year, Glada Company produces 23,000 units of a component...

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Make-or-Bty Decision, Aiternatives, Relevant Costs Each year, Glada Company produces 23,000 units of a component part used in tablet computers. An outside suppller has offered to supply the part for $1.12. The unit cost is: 1. What are the alternatives for Giads Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidoble. List the relevant cost(s) of internal production. Direct materials, direct labor and vaniable overhead List the relevant cost(s) of external purchase, 3. Which alternative is more cost effective and by how much? by's 4. What if $20,240 of foxed overhead is rentat of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? by 5

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