Gelb Co. currently makes a key part for its main product. Making this part incurs per unit
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Gelb Co. currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.20 for direct materials and $0.75 for direct labor. Incremental overhead to make this part is $1.40 per unit. The company can buy the part for $3.50 per unit.
(a) Prepare a make or buy analysis of costs for this part.
(b) Should Gelb make or buy the part?
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a b Make Part The company should make the par...View the full answer
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