Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would require $6.35 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 210% of direct labor cost. Xia estimates an incremental overhead rate of $0.60 per unit to make the part.

Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would require $6.35 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 210% 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.) Per Unit Make Buy 1-b. Should Xia make or buy the part? O Make Buy