Goldberg Company currently manufactures $46,500$ units per year of a key component for its manufacturing process. Variable costs are $$4\mathrm{.}05$ per unit, fixed costs related to making this component are $$75,000$ per year, and allocated fixed costs are $$83,500$ per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $$3\mathrm{.}70$ per unit.

Calculate the total incremental cost of making $46,500$ units and buying $46,500$ 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 tabs below.

Costs to Make

Costs to Buy

Outside

Supplier

Calculate the total incremental cost of making $46,500$ units. $($Round "variable cost per unit" answers to $2$ decimal places.$)$

$\backslash$table$[[$Incremental Costs to Make$],[$Variable cost per unit,$\backslash$table$[[$Relevant$],[$Amount per$],[$Unit$]],\backslash$table$[[$Relevant$],[$Fixed Costs$]],\backslash$table$[[$Total Relevant$],[$Costs$]]],[$$$,4\mathrm{.}05,,,$$$,188,325],[$Fixed manufacturing costs,,,$$,75,000,,75,000],[$Total incremental cost to make,$$,263,325]]$