4)

Gelb Company currently manufactures 50,500 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $69,000 per year, and allocated fixed costs are $70,500 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 50,500 units.(Round "variable cost per unit"answer to 2 decimal places.)

Calculate the total incremental cost of buying 50,500 units.

Incremental Costs to Make Relevant amount per unit Relevant fixed costs total relevant costs Total Incremental cost to make Calculate the total incremental cost of buying 50,500 units Incremental Costs to buy Relevant Amount per unit relevant fixed costs Total Incremental cost to buy total relevant cost