1) You are given the information under Chapter 10 (Relevant Costing - Make vs. Buy), to produce 30,000 units of a key component of one of your products. Considering the assumptions below the table, what is the relevant cost to produce that component?

Please round your answer to the nearest cent; do not include dollar signs.

2) Given your answer to the previous question, what would be your managerial decision if an outside supplier could provide the component for 29.00 per unit? (select an answer)

A: make the component

B: buy the component

C: not enough info

3) Given your answer to the previous question, what would be your managerial decision if an outside supplier could provide the component for 23.00 per unit?

A: make the component

B: buy the component

C: not enough info

For Chapter 10 (Relevant Costing - Make vs. Buy) Questions: Historical Costs DM DL OH selling expense admin expense total expense unit 7.70 6.30 10.00 6.00 2.60 32.60 Q30,000 231,000 189,000 300,000 180,000 78,000 978,000 Assume OH is 75% variable and 25% fixed Assume Selling Expense is 2/3 variable and 1/3 fixed Assume Admin Expense if 50% variable and 50% fixed