Pe sinitCobe Company has manufactured $280$ partially finished cabinets at a cost of $$70,000.$ These can be sold as is for $$84,000.$ Instead,

the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $$16,800,$ and the

finished cabinets could be sold for $$112,000.$

$($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 $2$ desimat placest.Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $$1\mathrm{.}90$ for direct

materials and $$1\mathrm{.}45$ for direct labor. Incremental overhead to make this part is $$1\mathrm{.}68$ per unit. The company can buy the part for $$5\mathrm{.}32$

per unit.

$($a$)$ Prepare a make or buy analysis of costs for this part.

Note: Enter your answers rounded to $2$ decimal places.

$($b$)$ Should Gelb make or buy the part?