Question
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.20 for direct materials
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.20 for direct materials and $0.75 for direct labor Incremental overhead to make this part is $1.40 per unit. The company can buy the part for $3.50 per unit (e) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? () Maka o Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should Make Buy
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