Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.80 for direct materials and $1.35 for direct labor. Incremental overhead to make this part is $1.64 per unit. The company can buy the part for $5.06 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? A company must decide between scrapping or rworking units that do not pass inspection. The company has 13,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $37,700 or reworked for $58,500 and then sold for $114,400. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? Varto Company has 13,600 units of its product in inventory that it produced last year at a cost of $159,000. This year's model is better than last year's, and the 13,600 units cannot be sold at last year's normal selling price of $37 each. Varto has fwo altematives for these units. (1) They can be soid as is to a wholesaler for $204,000 or (2) they can be processed further at an additional cost of $142,000 and then sold for $340,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Varto sell the products as is or process further and then sell them