Gelb Company currently manufactures 52,500 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit , fixed costs related to making this component are $65.000 per year, and allocated fixed costs are $73,500 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 $3.50 per unit: Calculate the total incremental cost of making 52,500 and buying 52,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Outside Costs to Make Costs to Buy Supplier Calculate the total incremental cost of making 52,500 units. (Round Variable cost per unit" answer to 2 decimal places) Total Rolevant Costs Incremental Costs to Make Relevant Relevant Amount per Unit Fixed costs Variable cost per unit Fixed manufacturing costs Total incremental cost to make (Costs to Make Costs to Buy > Gelb Company currently manufactures 52.500 units per year of a key component for its manufacturing process. Variable costs are $625 per unit, fixed costs related to making this component are $65.000 per year and allocated fixed costs are 573,500 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 $3.50 per unit Calculate the total incremental cost of making 52,500 and buying 52,500 units Should it continue to manufacture the component or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places) Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 52,500 units. (Round variable cost per unit answer to 2 decimal places) Incremental Costs to Buy Relevant Amount per Relevant Total Relevant Fixed Costs Costs Unit Purchase price per unit Total incremental cost to buy Costs Make Outside Supplier > Gelb Company currently manufactures 52,500 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit fixed costs related to making this component are $65,000 per year and allocated fixed costs are $73,500 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 $3,50 per unit Calculate the total incremental cost of making 52,500 and buying 52,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Supplier Costs to Make Costs to Buy Outside Should it continue to manufacture the component, or should it buy this component from the outside suppler? Should Gold make the part of purchase it from the outside suppller?
