Question: Xia Co . currently buys a component part for $ 6 per unit. Xia believes that making the part would require $ 3 . 2

 Xia Co. currently buys a component part for $6 per unit.
Xia Co. currently buys a component part for $6 per unit. Xia believes that making the part would require $3.25 per unit of direct materials and $1.15 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 250% of direct labor cost. Xia estimates an incremental overhead rate of $0.60 per unit to make the part.
1-a. What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.)
\table[[,Per Unit],[Make,],[Buy,],[,]]
1-b. Should Xia make or buy the part?
Make
Bu
Xia believes that making the part would require $3.25 per unit of

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