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 $ per unit. Xia believes that making the part would require $ per unit of direct materials and $ per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of of direct labor cost. Xia estimates an incremental overhead rate of $ per unit to make the part.
a What are the relevant costs for Xia to make or buy the part? Round your answers to decimal places.
tablePer UnitMakeBuy
b Should Xia make or buy the part?
Make
Bu
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