2. CONCEPTUAL CONNECTION: Briefly explain how increasing or decreasing the 75% figure affects Zions final decision to make or purchase the component. As the percentage of avoidable fixed cost increases (above 75%), total relevant costs of making the component increase, causing the purchase decision to be financially appealing (compared to the make option) than it was when the percentage was 75%. In other words, as the percentage increases, difference between the purchase and make options increases resulting in the purchase decision being even attractive. Alternatively, as the percentage of avoidable fixed costs decreases, the make option eventually is costly and appealing financially as the purchase option. Finally, as the percentage of avoidable fixed cost decreases low enough and the total relevant costs of making the component decrease, the option becomes the more financially appealing option