2. The Wolf Company currently manufactures 50,000 units per year of one of its crucial parts. Variable costs are $2.40 per unit, fixed costs related to making this part are $50,000 per year, and allocated fixed costs are $55,000 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 $3.60 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 50,000 and buying 50,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?

Outside Supplier Costs to Make Costs to Buy Calculate the total incremental cost of making 50,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Make Relevant Amount per Relevant fixed Total relevant costs costs Unit Total incremental cost to make Outside Supplier Costs to Make Costs to Buy Calculate the total incremental cost of buying 50,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy RelevantRelevant Amount per Unit fixed costs Total relevant costs Total incremental cost to buy Outside Costs to Make Costs to BuySupplier Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Should Gilberto make the part or purchase it from the outside supplier