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Exercise 2 3 - 2 ( Algo ) Make or buy LO P 1 Gelb Company currently makes a key part for its main product.
Exercise Algo Make or buy LO P
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $ for direct materials and $ for direct labor. Incremental overhead to make this part is $ per unit. The company can buy the part for $ per unit.
a Prepare a make or buy analysis of costs for this part. Enter your answers rounded to decimal places.
b Should Gelb make or buy the part?
tablea Make or Buy Analysis,Make,Direct materials,,Direct labor,,OverheadCost to buy,,Cost per unit,,Cost difference,,b Company should:,,
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