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Exercise 25-4 Make or buy decision LU AI Gilberto Company currently manufactures 40.000 units per year of one of ts crucial parts. Variable costs are
Exercise 25-4 Make or buy decision LU AI Gilberto Company currently manufactures 40.000 units per year of one of ts crucial parts. Variable costs are $190 per unt, fixed costs Teated to making this part are $40.000 per year, and allocated fixed costs are $30,000 per year. Aocated foved costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a suppiler for a quoted price of $3.10 per unit guaranteed for a three-year period Calculate the total incremental cost of making 40,000 and buying 40,000 units. Should the company continue to manufacture the part or should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Costs to Outside Make Buy Supplier Calculate the total incremental cost of making 40,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Make Relevant Relevant Total Amountfixed relevant per Unit costs costs Total incremental cost to make costs to Make Costs to Buy > Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 40.000 units per year of one of its crucial parts. Variable costs are $1.90 per unt, fixed costs related to making this part are $40.000 per year, and allocated fixed costs are $30,000 per year. Alocated 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 $3.10 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 40,000 and buying 40,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Costs to Outside Moke Buy Supplier Calculate the total incremental cost of buying 40,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy Relevant Relevant Total Amount per fixed relevant Unit COS costs Total incremental cost to buy Exercise 23-4 Make or buy decision LO A1 Gilberto Conpany currently manufactures 40.000 units per year of one of is crucial parts. Var able costs are $1.90 per unt, fixed costs related to making this part are $40.000 per year, and allocated fixed costs are $30,000 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 $3.10 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 40,000 and buying 40,000 units. Should the company continue to manufacture the part or should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Costs to Outside Make Buy Supplier Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Should Gilberto make the part or purchase it from the outside supplier? (Costs to Buy Outside Supplier
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