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please answer costs to make costs to buy outside supplier Gelb Company currently manufactures 44,000 units per year of a key component for its manufacturing
please answer costs to make costs to buy outside supplier Gelb Company currently manufactures 44,000 units per year of a key component for its manufacturing process. Variable costs are $405 per unit, fixed costs related to making this component are $77,000 per year, and allocated fixed costs are $76,500 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 44,000 units and buying 44,000 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 buying 44,000 units. (Round "purchase price per unit" answers to 2 decimal places.) Incremental Costs to Buy Relevant Amount per Relevant Total Relevant Unit Fixed Costs Costs Purchase price per unit Total incremental cost to buy
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costs to make
costs to buy
outside supplier
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