Samsung is considering whether to make or buy a component th…

Sаmsung is cоnsidering whether tо mаke оr buy а component that is used in the production of cell phones.  The annual cost of producing the 100,000 units needed by the company is as follows:  Variable manufacturing costs      $300,000  Fixed manufacturing costs           $100,000  Allocated corporate overhead       $50,000    If Samsung were to discontinue production of the component, fixed manufacturing costs would be reduced by 80%. Corporate overhead is allocated based on factory square footage.  Of the above costs, the amount NOT relevant to the company's make-or-buy decision is: