Gelb Company currently manufactures 59,000 units per year of a key component for its manufacturing process....
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657fd0e34975_4466657fd0e2f28d.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657fd0e896c3_4466657fd0e82b60.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657fd0ee50c1_4466657fd0edcf68.jpg)
Transcribed Image Text:
Gelb Company currently manufactures 59,000 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 $69,000 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 $3.70 per unit. Calculate the total incremental cost of making 59,000 units and buying 59,000 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 Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 59,000 units. (R per unit" answers to 2 decimal places.) Incremental Costs to Make Variable cost per unit Fixed manufacturing costs Total incremental cost to make Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs Gelb Company currently manufactures 59,000 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 $69,000 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 $3.70 per unit. Calculate the total incremental cost of making 59,000 units and buying 59,000 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 Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 59,000 units. (R per unit" answers to 2 decimal places.) Incremental Costs to Make Variable cost per unit Fixed manufacturing costs Total incremental cost to make Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Explain whether this reaction would follow the SN1 or the SN2 mechanism and then explain which reaction is faster: CI a) CHCH + OH HO CHOH CH3 b) CHC-Br + CHCO CH, O-SOCH3 or CHCH CH CO,H or + OH CH3...
-
A single set of multi-purpose financial statements is unable to satisfy the needs of shareholders for both a stewardship report and a report to assist the prediction of future cash flows. Discuss.
-
Henry and Mary entered into a written contract whereby Henry agreed to sell and Mary agreed to buy a certain automobile for $8,500. Henry drove the car to Marys residence and properly parked it on...
-
Test 5 nty3414057 Due Friday by 11:59pm Points 100 Submitting an external tool Available after Apr 24 at 12am 225pg CRN26879 OL Full Test Test 5 Jackson Company has the following data Question 19 of...
-
Most retail environments have done away with any backroom, and currently most follow Wal-Marts innovation of 50 years ago to increase the size of the store by getting rid of the "backroom" thus,...
-
How is this done in excel and also on a financial calculator? Suppose you had a stock with the following annual returns: 25%, -10%, 15%, 5%, -8%. What is the arithmetic mean return for this stock?...
-
Determine the number of pairs (a, b) of positive integers with a 100 and b 100 such that 324 x 22+3+4 is a perfect fifth power.
-
A linear function is given. f(x) = 13x+4 (a) Find the average rate of change of the function between x = a and x = a + h. (b) Find the slope of the line.
-
How has the proportion of debt financing and equity financing changed over the years? (Compared to the average in the market). Is the corporation experiencing favorable or unfavorable financial...
-
The figure below shows a pulley system with two masses. M i. ii. Non-frictional surface iv. M Derive an expression for the acceleration of the two masses in terms of M1 and M2. Determine the tension...
-
Study the case titled, General Motors Technical Problem-Solving Group Drives Excellence by Megan Schmidt. Write a report summarizing this case in your own words. Also, discuss the lessons learned in...
-
Explain why financial instruments, particularly derivatives, can alter the risk profile of a business. Use a forward currency contract as an example. Discuss whether disclosure alone is sufficient to...
-
On 1 April year 1, a deep discount bond was issued by DDB AG. It had a face value of 2.5 million covering a five-year term.The lenders were granted a discount of 5%. The coupon rate was 10% on the...
-
Many groups have treasury policies that use hedging of net positions. They would look at their group-wide exposure in, e.g. foreign currency and then take forward contracts to cover the position....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App