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Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $2.70 per un psts related to making this
Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $2.70 per un psts related to making this part are $70,000 per year, and allocated fixed costs are $35,000 per year. All Next ted costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.90 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 70,000 and buying 70,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Costs to Outside Make | Buy Supplier Calculate the total incremental cost of making 70,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Make Relevant Relevant Amountfixed per Unit costs Total relevant costs Total incremental cost to make Costs to Costs to Outside Make Buy Supplier Calculate the total incremental cost of buying 70,000 units. (Round cost per unit ans 2 decimal places.) Incremental Costs to Buy Relevant Relevant Amount per fixed Unit costs Total relevant costs Total incremental cost to buy Costs to Costs to | Outside Make | Buy Supplier Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Should Gilberto make the part or purchase it from the outside supplier?
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