question6

question 7 part 1 and 2

Exercise 25-22 Scrap or rework LO A1 Varto Compa superior to last year's, and the 9,800 units cannot be sold at last year's regular selling price of $38 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $9 each, or (2) they can be reworked at a cost of each. Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them. ny has 9,800 units of its sole product in inventory that it produced last year at a cost of $31 each. This year's model is TAL REVENUE AND COST OF ADDITIO net i Inc Costs to Buy Next > Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $3.70 per un related to making this part are $70,000 per year, and allocated fixed costs are $35,000 per year. Allocated fixed costs are whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price o unit guaranteed for a three-year period. Calculate the total incremental cost of making and buying 70,000 units. Should the company continue to manufacture the should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. Inc Costs to Inc Costs to Buy Calculate the total incremental cost of buying 70,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? (Round cost per unit answer to 2 decimal places.) ental Costs to Buy Relevant AmountRelevant Fixed Total Relevant r Unit Costs Costs Total incremental cost to buy Inc Costs to Make