1 Gelb Company currently manufactures 48,500 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $87,000 per year, and allocated fixed costs are $68,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 48,500 units and buying 48,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? 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 48,500 units. (Round "variable cost per unit" answers to 2 decimal places.) Incremental Costs to Make Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs Variable cost per unit Fixed manufacturing costs Total incremental cost to make $ 0 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 buying 48,500 units. (Round "purchase price per unit" answers to 2 decimal places.) Incremental Costs to Buy Relevant Relevant Amount per Fixed Costs Unit Purchase price per unit Total incremental cost to buy Total Relevant Costs 2 Cobe Company has already manufactured 20,000 units of Product A at a cost of $25 per unit. The 20,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $240,000 total additional cost and be converted into 5,500 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $106 and for Product C is $50. 1. Prepare an analysis that shows whether the 20,000 units of Product A should be processed further or not? Sell as is Process Further Sales Relevant costs: Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.30 per unit to manufacture. The units can be a) sold as is for $3.20 each, or b) reworked for $4.60 each and then sold for the full price of $8.50 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Incremental income (loss) The company should: Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.3 pounds of the material, S5 uses 3.9 pounds of the material, and G9 uses 5.1 pounds of the material. Demand for all products is strong, but only 44,300 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. Selling price Variable costs K1 $ 162.80 94.00 S5 $111.71 77.00 G91 $196.20 135.00 Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.) Contribution margin per pound Product K1 Product S5 Product G9 Contribution margin per pound Order in which products should be produced and filled