Exercise 25-20 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 $7.35 per unit, fixed costs related to making this component are $89,000 per year, and allocated fixed costs are $71,500 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 and buying 48,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Inc Costs to Inc Costs to Make Buy Calculate the total incremental cost of making 48,500 units. (Round "variable cost per unit" answer to 2 decimal places.) Total Relevant Costs Incremental Costs to Make Relevant Amount Relevant per Unit Fixed Costs Variable cost per unit Fixed manufacturing costs Total incremental cost to make Inc Coats to Buy > Exercise 25-20 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 $7.35 per unit, fixed costs related to making this component are $89,000 per year, and allocated fixed costs are $71,500 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 and buying 48,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Inc Costs to Make Inc Costs to Buy Calculate the total incremental cost of buying 48,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy Relevant Amount Relevant Fixed Costs Total Relevant Costs per Unit Purchase price per unit Total incremental cost to buy The component should manufacture or buy from the outside supplier. Inc Costs to Make Prey 2 of 2 Next