Saved Help 2 Gelb Company currently manufactures 59,500 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $87,000 per year, and allocated fixed costs are $80,500 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 59,500 units and buying 59,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? boints Skipped Complete this question by entering your answers in the tabs below. eBook Costs to Make Costs to Buy Outside Supplier Hint Calculate the total incremental cost of making 59,500 units. (Round "variable cost per unit' answers to 2 decimal places.) Incremental Costs to Make Relevant Relevant Amount per Unit Fixed Costs Total Relevant Costs References Variable cost per unit Fixed manufacturing costs Total incremental cost to make s Dosts to make Costs to Buy > 2 Gelb Company currently manufactures 59,500 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $87,000 per year, and allocated fixed costs are $80,500 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 59,500 units and buying 59,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? points Skipped Complete this question by entering your answers in the tabs below. eBook Hint Print Outside Costs to Make Costs to Buy Supplier Calculate the total incremental cost of buying 59,500 units. (Round "purchase price per unit" answers to 2 decimal places.) Incremental Costs to Buy Relevant Relevant Total Relevant Amount per Unit Costs Fixed Costs Purchase price per unit Total incremental cost to buy References 3 Cobe Company has already manufactured 18,000 units of Product A at a cost of $25 per unit. The 18,000 units can be sold at this stage for $480,000. Alternatively, the units can be further processed at a $270,000 total additional cost and be converted into 5,800 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $110 and for Product C is $58. 1. Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not? Ints Process Further Sell as is $ 480,000 eBook Sales Relevant costs: Costs to process further 270,000 Hint Total relevant costs Income (loss) 270,000 Print Incremental net income (or loss) if processed further incremental income References The company should process further 4 Varto Company has 9,200 units of its sole product in inventory that it produced last year at a cost of $26 each. This year's modelis superior to last year's, and the 9,200 units cannot be sold at last year's regular selling price of $42 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $11 each or (2) they can be processed further at a cost of $209,800 and then sold for $33 each. Should Varto sell the products as is or process further and then sell them? Doints INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue cBook Hint Incremental net income(Loss) The company should Print DO References