Question: Your answer is partially correct. Try again. Culver Rides makes bicycles. It has always purchased its bicycle tires from the Balyo Tires at $12 each
Your answer is partially correct. Try again. Culver Rides makes bicycles. It has always purchased its bicycle tires from the Balyo Tires at $12 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials $4 Direct labor $4 Variable manufacturing overhead The company's fixed expenses would increase by $28,840 per year if managers decided to make the tire. (21) Calculate total relevant cost to make or buy if the company needs 5,600 tires a year. Make Buy $2 Total relevant cost $ (a2) Ignoring qualitative factors, if the company needs 5,600 tires a year, should it continue to purchase them from Balyo or begin to produce them internally? The company should continue to purchase the tires Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO
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