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Gelb Company currently manufactures 50,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, foed costs related
Gelb Company currently manufactures 50,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, foed costs related to making this component are $67,000 per year, and allocated fixed costs are $69,500 per year. The allocated bed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit Calculate the total incremental cost of making 50,500 units and buying 50,500 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 Costs to Outside Make Buy Supplier Calculate the total incremental cost of making 50,500 units. (Round "variable cost per unit" answers to 2 decimal places.) Incremental Costs to Make Relevant Relevant Amount Fixed Costs S 50,500.00 Total Relevant Costs per Unit $ 148,975 Variable cost per unit Fixed manufacturing costs Total incremental cost to make $ 148,975 Costs to Buy > Costs to Make Gelb Company currently manufactures 50,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, foed costs related to making this component are $67,000 per year, and allocated fixed costs are $69,500 per year. The allocated foxed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit Calculate the total incremental cost of making 50,500 units and buying 50,500 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 Costs to Outside Make Buy Supplier Calculate the total incremental cost of buying 50,500 units. (Round "purchase price per unit" answers to 2 decimal places.) Total Incremental Costs to Buy Relevant Relevant Amount Fixed per Unit Costs Purchase price per unit Total incremental cost to buy Relevant Costs Gelb Company currently manufactures 50,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fed costs related to making this component are $67,000 per year, and allocated fixed costs are $69,500 per year. The allocated foed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 50,500 units and buying 50,500 units. Should It continue to manufacture the component, or should it buy this component from the outside suppller? Complete this question by entering your answers in the tabs below. Costs to Costs to Outside Make Buy Supplier 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? (Costs to Buy Outside Supplier
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