1 1 QS 23-5 Sell or process LO P2 3.33 points Garcia Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damaged in a rainstorm because the warehouse where they were stored developed a leak in the roof Garcia can sell the units as is for $2 each or it can repair the units at a total cost of $18,000 and then sell them for $5 each Calculate the Incremental net income if the units are repaired WE Sell as is Process further Incremental Net Income Sales Additional processing costs TO 2 Exercise 23-1 Make or buy LO P1 333 points Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fixed costs related to making this part are $75,000 per year, and allocated fixed costs are $62,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part Gilberto is considering buying the part from a supplier for a quoted price of $325 per unit guaranteed for a three-year perlod Calculate the total incremental cost of making 65,000 and buying 65.000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Book ant Print References Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 65,000 units. (Round cost per unit answers to 2 decimal places) incremental Costs to Make Relevant Amount per Relevant Fixed Total Relevant Unit Costs Costs Vanable com per unit Fed manufacturing costs Total incremental cost to make Cont 2 Exercise 23-1 Make or buy LO P1 333 points Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $195 per unit, fixed costs related to making this part are $75,000 per year, and allocated fixed costs are $62,000 per year. Allocated fixed costs are unavoldable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.25 per unit guaranteed for a three year period, Calculate the total incremental cost of making 65.000 and buying 65.000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? BOOK Hint Pris References Complete this question by entering your answers in the tabs below. Costs to Make Costs to Boy Outside Supplier Calculate the total incremental cost of buying 65,000 units. (Round cost per unit answers to 2 decimal places.) Incremental Costs to Buy Relevant Amount per Relevant Fixed Unit Costa Total Relevant Costs Purchase priceperunt Total incremental cost to buy 2. Exercise 23-1 Make or buy LO P1 333 point Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fixed costs related to making this part are $75,000 per year, and allocated fixed costs are $62,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.25 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 65,000 and buying 65,000 units. Should the company continue to manufacture the part. or should it buy the part from the outside supplier? Book Hint Print References Complete this question by entering your answers in the tabs below. Costs to Make its to Buy Outside Supplier Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Should Giberto make the part or purchase it from the outside suppler? m. Exercise 23.5 Sell or process further LO P2 334 point Varto Company has 7000 units of its sole product in Inventory that it produced last year at a cost of $22 each. This year's model is superior to last year's, and the 7000 units cannot be sold at last year's regular selling price of $35 each Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each or (2) they can be processed further at a cost of $125,000 and then sold for $25 each. Should Varto sell the products as is of process further and then sell them? DOOR Fint INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue it processed further Revenue of sold as is Incremental revenue References Incremental income (Loss) The company should