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Pe sinitCobe Company has manufactured 2 8 0 partially finished cabinets at a cost of $ 7 0 , 0 0 0 . These can
Pe sinitCobe Company has manufactured partially finished cabinets at a cost of $ These can be sold as is for $ Instead,
the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $ and the
finished cabinets could be sold for $
a Prepare a sell as is or process further analysis of income effects.
b Should the cabinets be sold as is or processed further and then sold?
Note: Emer your arewer pumded te desimat placest.Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $ for direct
materials and $ for direct labor. Incremental overhead to make this part is $ per unit. The company can buy the part for $
per unit.
a Prepare a make or buy analysis of costs for this part.
Note: Enter your answers rounded to decimal places.
b Should Gelb make or buy the part?
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