Exercise 10-2 (Static) Make or buy LO P1 Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $120 for direct materials and $0.75 for direct labor. Incremental overhead to make this part is $1.40 per unit The company can buy the part for $3.50 per unit (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? Make Buy (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should Exercise 10-3 (Static) Sell or process LO P2 Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000. These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,000, and the finished cabinets could be sold for $80,000 (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? Sell As is Process Further (a) Sell or Process Analysis Revenue Costs Income Incremental income (loss) to process further (b) The company should