Question: Xia Co. Currently buys a component part for $5 per unit. Xia believes.. Xia Co. currently buys a component part for S5 per unit. Xia

Xia Co. Currently buys a component part for $5 per unit. Xia believes..

Xia Co. Currently buys a component part for $5 per unit. Xia

Xia Co. currently buys a component part for S5 per unit. Xia believes that making the part would require S2.25 per unit of direct materials and S1.00 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 200% of direct labor cost. Xia estimates an incremental overhead rate of SO.75 per unit to make the part. What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) Should Xia make or buy the part? Make Buy

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