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Hurry Gelb Company currently manufactures 50,500 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs
Hurry
Gelb Company currently manufactures 50,500 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $83,000 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 $3.70 per unit. Calculate the total incremental cost of making 50,500 units and buying 50,500 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. Outside Costs to Make Costs to Buy Supplier Calculate the total incremental cost of making 50,500 units. (Round "variable cost per unit" answers to 2 decimal places.) Incremental Costs to Make Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs Variable cost per unit Fixed manufacturing costs Total incremental cost to make $ Ceas to make Costs to Buy > Complete this question by entering your answers in the tabs below. Costs to Make casts to Buy Outside Supplier Calculate the total incremental cost of buying 50,500 units. (Round "purchase price per unit" answ Incremental Costs to Buy Relevant Relevant Amount per Fixed Costs Unit Purchase price per unit Total incremental cost to buy Total Relevant Costs Step by Step Solution
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