Exercise $25-2($Algo$)$ Make or buy LO P$1$

Gelb Company currently makes a key part for its maln product. Making this part incurs per unit varlable costs of $$1\mathrm{.}40$ for direct materlals and $$0\mathrm{.}95$ for direct labor. Incremental overhead to make this part is $$1\mathrm{.}48$ per unit. The company can buy the part for $$4\mathrm{.}02$ per unit.

$($a$)$ Prepare a make or buy analysis of costs for this part.

Note: Enter your answers rounded to $2$ decimal places.

$($b$)$ Should Gelb make or buy the part?

$\backslash$table$[[($a$)$ Make or Buy Analysis,Make,,Buy$],[$Direct materials,$s,1\mathrm{.}40,,,],[$Direct labor,,$0\mathrm{.}95,,,],[$Overhead$,,1\mathrm{.}48,,1,1],[$Cost to buy,,$4\mathrm{.}02,5,,4\mathrm{.}02],[$Cost per unit,s$,3\mathrm{.}83,,,],[$Cost difference,$s,,,,0\mathrm{.}19],[($b$)$ Company should:,,,,,$]]$