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Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $98,000 to produce 1,725 units that

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Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $98,000 to produce 1,725 units that can be sold now for $71,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $265 per unit. If Holmes processes further, the units can be sold for $445 each. Compute the incremental income if Holmes processes further. Process Sell as is Further Incremental Amount Sales Additional processing costs Income (loss) The company should: Gelb Company currently manufactures 45,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $77,000 per year, and allocated fixed costs are $77,500 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 $3.50 per unit. Calculate the total incremental cost of making 45,500 and buying 45,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) 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 45,500 units. (Round "variable cost per unit" answer to 2 de Incremental Costs to Make Relevant Relevant Amount per Fixed Costs Unit Total Relevant Costs Total incremental cost to make Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 45,500 units. (Round "variable cost per unit" answer to 2 de Incremental Costs to Buy Relevant Relevant Amount per Fixed Costs Unit Total Relevant Costs Total incremental cost to buy (Costs to Make Outside Supplier > Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Should it continue to manufacture the component, or should it buy this component from the outside suppli Should Gelb make the part or purchase it from the outside supplier? Costs to Buy Outside Supplier > A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.90 per unit to manufacture. The units can be sold as is for $2.80 each, or they can be reworked for $4.60 each and then sold for the full price of $8.70 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.90 each, and sell them at the full price of $8.70 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Incremental income (loss) The company should

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