Exercise 8-8 The Bridgeport Company manufactures 1,125 units of a part that could be purchased from an

Exercise 8-8 The Bridgeport Company manufactures 1,125 units of a part that could be purchased from an outside supplier for $13 each. Bridgeport’s costs to manufacture each part are as follows: Direct materials $2 Direct labor 3 Variable manufacturing overhead 3 Fixed manufacturing overhead 9 Total $17 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a) Calculate relevant cost to make. Relevent cost to make $ 8 per unit (b) Should Bridgeport continue to manufacture the part? LINK TO TEXT LINK TO VIDEO (c) Calculate net cost to buy if Bridgeport leases the manufacturing facilities to another company for $7,195 per year. Net cost to buy $ (d) Would your answer change if Bridgeport could lease the manufacturing facilities to another company for $7,195 per year?