Exercise 23-5 Make or buy LO A1 Gelb Company currently manufactures 48,500 units per year of a key component for its manufacturing process Variable costs are $515 per unit, fixed costs related to making this component are $65.000 per year, and allocated fixed costs are $67,500 per year. The allocated foxed 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 48,500 and buying 48,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) 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 48,500 units. (Round "variable cost per unit" answer to 2 decimal places.) Incremental Costs to Make Relevant Relevant Amount per Fred Costs Unit Total Relevant Costs Total incremental cost to make To Make Costs to Buy > Exercise 23-5 Make or buy LO A1 Gelb Company currently manufactures 48.500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $65.000 per year, and allocated fixed costs are $67,500 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 48,500 and buying 48.500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) 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 48,500 units. (Round "variable cost per unit" answer to 2 decimal places.) Incremental Costs to Buy Relevant Relevant Fixed Costs Total Relevant Costs Ut Total incremental cost to buy
Exercise 23-5 Make or buy LO A1 Gelb Company currently manufactures 48,500 units per year of a key component for its manufacturing process. Variable costs are $515 per unit, fed costs related to making this component are $65.000 per year, and allocated fixed costs are $67,500 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 48,500 and buying 48,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside qupplier Should it continue to manufacture the component, or should it buy this component from the outside supplier? Should Gob make the part or purchase it from the outside supplier?