Question: Relevant Cost Analysis for Make or Buy Decision : A company manufactures a component in-house at a variable cost of $50 per unit. The company

Relevant Cost Analysis for Make or Buy Decision: A company manufactures a component in-house at a variable cost of $50 per unit. The company receives a bid from an external supplier to provide the component at $45 per unit. If the company decides to buy from the supplier, it can avoid fixed costs of $10,000 per month associated with in-house production. Determine whether the company should make or buy the component based on relevant costs.

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