Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs are $195 per unit, fed costs related to making this component are $65,000 per year, and allocated fixed costs are $58,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $350 per unit Calculate the total incremental cost of making 40,000 units and buying 40,000 units. Should it continue to manufacture the component or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier nces Calculate the total incremental cost of making 40,000 units. (Round "variable cost per unit" answers to 2 decimal places) Incremental Costs to Make Relevant Amount per Relevant Fixed Unit Costs Total Relevant Costs Variable cost per un Fixed manufacturing costs Total incremental cost to make Costs to Buy > Gelb Company currently manufactures 40.000 units per year of a key component for its manufacturing process. Variable costs are $1.95 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $58,500 per year T allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $350 per unit Calculate the total incremental cost of making 40,000 units and buying 40,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Book Complete this question by entering your answers in the tabs below. Hint Costs to Make Cost to Buy Outside Supplier Costs to Buy Calculate the total retrencar dost of buying 40,000 units. (Round "purchase price per unit answers to 2 decimal places.) ferences Incremental Costs to Buy Relevant Amount Relevant Fixed Costs per Unit Total Relevant Costs Purchase price per unit Total incremental cost to buy Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs $1.95 per unit , fixed costs related to making this component are $65.000 per year, and allocated fixed costs are $58,500 per y allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 40,000 units and buying 40,000 units. Should it continue to manufacture the component or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Ences Should it continue to manufacture the component, or should it buy this component from the outside supplier? Should Gelb make the part or purchase it from the outside supplier?
