--/1 Question 3 View Policies Current Attempt in Progress Riverbed Rides makes bicycles. It has always purchased its bicycle tires from the Balyo Tires at $11 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 $4 $5 $2 The company's fixed expenses would increase by $28,190 per year if managers decided to make the tire. (a1) Calculate total relevant cost to make or buy if the company needs 5,860 tires a year. Make Buy $ $ Total relevant cost (a2) Ignoring qualitative factors, if the company needs 5,860 tires a year, should it continue to purchase them from Balyo or begin to produce them internally? The company to purchase the tires. e Textbook and Media Save for Later Attempts: 0 of 12 used Submit