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Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.45 for direct materials and
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.45 for direct materials and $1.00 for direct labor. Incremental overhead to make this part is $1.50 per unit. The company can buy the part for $4.15 per unit. (a) 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
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