Gelb Company currently manufactures 53.000 units per year of a key component for its manufacturing process. Variable costs are 56.25 per unit, foxed costs related to making this component are $67,000 per year, and allocated fixed costs are $61,500 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 $3.90 per unit Calculate the total incremental cost of making 53,000 units and buying 53,000 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 Calculate the total incremental cost of making 53,000 units. (Round Variable cost per un anwers to 2 decimal places) incremental Costs to Make Relevant Amount per Relevant Total Relevant Unit Fixed Coats Costo Variable cost per unit Fixed manufacturing costs Total incremental cost to make Coats to Buy > Gelb Company currently manufactures 53,000 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 $67,000 per year, and allocated fixed costs are $61,500 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 $3.90 per unit. Calculate the total incremental cost of making 53,000 units and buying 53,000 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 Calculate the total incremental cost of buying 53,000 units. (Round "purchase price per unit" answers to 2 decimal places.) Incremental Costs to Buy Relevant Amount per Relevant Fixed Couts Unit Purchase price per unit Total incremental cost to buy Total Relevant Casts
Gelb Company currently manufactures 53.000 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 $67,000 per year, and allocated fixed costs are $61.500 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 $3.90 per unit. Calculate the total incremental cost of making 53,000 units and buying 53,000 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. Outside Supplier Casts to Make Costs to Buy 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?