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Gilberto Company currently manufactures 40,000 units per year of one of its crucial parts. Variable costs are $1.90 per unit, fixed costs related to making this part are $40,000 per year, and allocated fixed costs are $30,000 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 $3.10 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 40,000 and buying 40,000 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 40,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Make Relevant fixed costs Total relevant Amount per Unit costs Total incremental cost to make Outside Supplier Costs to Make Costs to Buy Calculate the total incremental cost of buying 40,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy Relevant Total relevant Relevant Amount per Unitfixed costs costs Total incremental cost to buy Outside Costs to BuySupplier Costs to Make 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