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Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are

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Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fixed costs related to making this part are $75,000 per year, and allocated fixed costs are $62,000 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 $3.25 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 65,000 and buying 65,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Answer is not complete. Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 65,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Make Relevant Relevant Total Amount Fixed Relevant per Unit Costs Costs Variable cost per unit $ $ 126,750 Fixed manufacturing costs S 1.00 $ 75,000 Total incremental cost to make $ 201,750 1.95 Costa Mh Costs to Buy > Answer is not complete. Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of buying 65,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy Relevant Relevant Total Amount Fixed Relevant Costs Costs Purchase price per unit 1 * $ 1 Total incremental cost to buy $ 1 por Unit

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