Gilberto Company currently manufactures 87,000 units per year of one of crucial parts. Variable costs are $3.05 per unit, fixed costs related to making this part are $97,000 per year, and allocated fixed costs are $84,000 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 $4.25 unit guaranteed for a three-year period. Calculate the total incremental cost of making 87,000 and buying87,000 units. Should the company to manufacture the or should it buy the part from the outside suppller?

Gilberto Company currently manufactures 87,000 units per year of one of its crucial parts. Variable costs are $3.05 per unit, fixed costs related to making this part are $97.000 per year, and allocated fixed costs are $84,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gllberto is considering buying the part from a supplier for a quoted price of $4.25 per unit guaranteed for a three year period. Calculate the total incremental cost of making 87.000 and buying 87.000 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. Outside Costs to Make Corts to Buy Supplier Calculate the total incremental cost of making 87,000 units. (Round cost per unit answers to 2 decimal places) Incremental Costs to Make Relevant Amount per Relevant Fixed Total Relevant Unit Costo Costs Vanable cost per unit 5 3.05 Fixed manufacturing costs 07.000 97 000 Total incremental cost to make $ 07.000 Gilberto Company currently manufactures 87.000 units per year of one of its crucial parts. Variable costs are $3.05 per unit, fixed costs related to making this part are $97.000 per year, and allocated fixed costs are $84.000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part, Gilberto is considering buying the part from a suppler for a quoted price of $4.25 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 87.000 and buying 87,000 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. Outside Supplier Costs to Make Costs to Buy Calculate the total incremental cost of buying 87,000 units. (Round cost per unit answers to 2 decimal places.) Incremental Costs to Buy Relevant Amount per Relevant Fixed Unit Conto Total Relevant Costs S 4 25 Purchase price per unit Total incremental cost to buy