Make-or-Buy Decision Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently...

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Make-or-Buy Decision Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently Required: 1. What are the alternatives facing Zion Manufacturing with respect to production of Component K2? Make the compone

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Answer 1

Answer #1

2) Total relevant cost

Make (7.51+2.58+1.82)	11.91
Buy	12
Differential cost to make (12-11.91)	0.09

Decrease (4600*.09) = $414

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Answer 2

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