Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $2.70 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 per year. Allocated fixed 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 Outside Make Costs to 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 RelevantRelevant fixed Total relevant Amount per Unit costs costs Total incremental cost to make Costs to Make Costs to Buy Complete this question by entering your answers in the tabs below. Outside Costs to Make Costs to BySupplier Calculate the total incremental cost of buying 70,000 units. (Round cost per unit answer to 2 decimal places.) ncremental Costs to Buy Relevant Amount per Unit Relevant Total relevant fixed costs costs Total incremental cost to buy K Costs to Make Outside Supplier Complete this question by entering your answers in the tabs below. Outside Costs to Make Costs to BySupplier 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? Costs to Buy Outside Supplier 2 Varto Company has 8,000 units of its sole product in inventory that it produced last year at a cost of $29 each. This year's model is superior to last year's, and the 8,000 units cannot be sold at last year's regular selling price of $44 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $11 each, or (2) they can be reworked at a cost of $126,200 and then sold for $26 each. Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them. INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue Incremental net income(Loss) The company should Cobe Company has already manufactured 25,000 units of Product A at a cost of $15 per unit. The 25,000 units can be sold at this stage for $430,000. Alternatively, the units can be further processed at a $300,000 total additional cost and be converted into 5,400 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is $108 and for Product C is $54. 1. Prepare an analysis that shows whether the 25,000 units of Product A should be processed further or not. Sell as is Process Further Sales Relevant costs: Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should 4 Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is available regarding its canoe segment. (Leave no cells blank. Enter zeros where appropriate.) MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs $2,600,000 Direct materials Direct labor ariable overhead Variable selling and administrative 570,000 620,000 420,000 260,000 Total variable costs Contribution margin Fixed costs 1,870,000 730,000 Direct Indirect 495,000 420,000 Total fixed costs Net income 915,000 $ (185, 000) 1. If canoes are discontinued, calculate the net income lost or gained Eliminate the department department Keep the Sales Expenses Total expenses Net income (loss)