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Kando Company incurs a $12.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and
Kando Company incurs a $12.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $8.00 per unit and sell it for $11.80 per unit. If it does so unit sales would remain unchanged and $8.00 of the $12.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) Make Buy Selling price per unit Cost per unit to make Cost per unit to buy Cost per unit not eliminated if bought Income per unit Company should Gelb Company currently manufactures 46.000 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 $71,000 per year, and allocated fixed costs are $64,500 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 $3.90 per unit. Calculate the total incremental cost of making 46.000 units and buying 46.000 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 45,000 units. (Round "variable cost per unit" answers to 2 decima 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 S
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