Gelb Company currently manufactures 54,000 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 $73,000 per year, and allocated fixed costs are $67,500 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 54,000 and buying 54,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?

Calculate the total incremental cost of making 54,000 units. (Round "variable Incremental Costs to Make Relevant Amount per Unit Total Relevant Relevant Fixed Costs Costs Total incremental cost to make Costs to Buy Costs to Make Calculate the total incremental cost of making 54,000 units. (Round "variable Incremental Costs to Buy Total Relevant Costs Relevant Relevant Amount per Unit Fixed Costs Total incremental cost to buy Outside Supp Costs to Make Should it continue to manufacture the component, or should it buy this comp Should Gelb make the part or purchase it from the outside supplier