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Sagot :
Answer and Explanation:
The computation is shown below:
The relevant costs for Xia Co. to make or buy the part is
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
And, the relevant cost of buying a component is $5
So here the less cost would be considered
Therefore the component should make as it saves $1 per unit
The same would be considered and relevant too
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