$13$

Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $$1\mathrm{.}70$ for direct materials and $$1\mathrm{.}25$ for direct labor. Incremental overhead to make this part is $$1\mathrm{.}60$ per unit. The company can buy the part for $$4\mathrm{.}80$ per unit.

$($a$)$ Prepare a make or buy analysis of costs for this part. $($Enter your answers rounded to $2$ decimal places.$)$

$5\mathrm{.}25$

$($b$)$ Should Gelb make or buy the part?

points

$02$:$18$:$44$

$\backslash$table$[[($a$)$ Make or Buy Analysis,Make,Buy$],[$Direct materials,,$],[$Direct labor,,$],[$Overhead$,,],[$Cost to buy,,$],[$Cost per unit,,$],[,,],[$Cost difference,,$],[,,],[($b$)$ Company should:,,$]]$