Question: View Policies Uier Bookm Current Attempt in Progress Bridgeport Rides makes bicycles. It has always purchased its bicycle tires from the Balyo Tires at $11
View Policies Uier Bookm Current Attempt in Progress Bridgeport 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 The company's fixed expenses would increase by $28,360 per year if managers decided to make the tire. (a1) Calculate total relevant cost to make or buy if the company needs 6,720 tires a year. Make Buy Total relevant cost $ (a2) Ignoring qualitative factors, if the company needs 6,720 tires a year, should it continue to purchase them from Balyo or begin to produce them internally? to purchase the tires. The company Show All
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