Question: Xia Co . currently buys a component part for $ 7 per unit. Xia believes that making the part would require $ 4 1 0

Xia Co. currently buys a component part for $7 per unit. Xia believes that making the part would require $410 per unit of direct materials and $1.15 per unit of direct labor. Xia allocates overhead using a predetermined overthead rate of 220% of direct labor cost. Xia estimates an incremental overhead rate of $0.75 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
Buy
Xia Co . currently buys a component part for $ 7

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