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Gilberto Company currently manufactures 60.000 units per year of one of its crucial parts. Variable costs are $2.60 per unit, fed costs related to making
Gilberto Company currently manufactures 60.000 units per year of one of its crucial parts. Variable costs are $2.60 per unit, fed costs related to making this part are $60,000 per year and allocated foed costs are $45.000 per year Allocated foed costs are unwidable whether the company makes or buys the part Gilberto is considering buying the part from a supplier for a quoted price of $380 per unit guaranteed for a three-year period Calculate the total incremental cost of making and buying 60,000 units. Should the company continue to manufacture the part of should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. Inc Costs to Make Inc Costs to Buy Calculate the total incremental cost of making 00,000 units. (Round cost per unit answer to 2 decimat places) Incremental Conts to Make Relevant Amount Relevant Fixed Total Relevant per Unit Costs Costs Variable cost per unit Fixed manufacturing costs Total incremental cost to make Inc Costs to Buy > Complete this question by entering your answers in the tabs below. Inc Costs to Inc Costs to Make Buy Calculate the total incremental cost of buying 60,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy Relevant Amount Relevant Fixed Total Relevant per Unit Costs Costs Purchase price per unit Total incremental cost to buy The component should manufacture or buy from the outside supplier
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