Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.75 for direct materials and $1.30 for direct labor. Incremental overhead to make this part is $1.62 per unit. The company can buy the part for $4.93 per unit.

Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.75 for direct materials and $1.30 for direct labor. Incremental overhead to make this part is $1.62 per unit. The company can buy the part for $4.93 per unit. (a) Prepare a make or buy analysis of costs for this part. Note: Enter your answers rounded to 2 decimal places. (b) Should Gelb make or buy the part