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Exercise 10-1 Make or buy LO P1 Gilberto Company currently manufactures 79,000 units per year of one of its crucial parts. Variable costs ne $265
Exercise 10-1 Make or buy LO P1 Gilberto Company currently manufactures 79,000 units per year of one of its crucial parts. Variable costs ne $265 per unit, fixed costs related to making this part are $89,000 per year, and allocated fixed costs are $75,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $385 per unit guaranteed for a three-year period Calculate the total incremental cost of making 79,000 and buying 79,000 units. Should the company continue to manufacture the port, or should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. costs to Make Costs to Buy Outside Supplier Outside Costs to Make Costs to Buy Supplier Calculate the total incremental cost of making 79,000 units. (Round cost per unit answers to 2 decimal places) Incremental Costs to Make Relevant Amount per Relevant Fixed Unit Costa Total Rolevant Costa Vanable cost per unit Fixed manufacturing costs Total incremental cost to make $ 0 Costs to Buy Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of buying 79,000 units. (Round cost per unit answers to 2 decimal places) Incremental Conts to Buy Relevant Amount per Relevant Fixed Unit Costs Total Rolevant Costs Purchase price per unit Total incremental cost to buy (Costs to Make Outside Supplier > Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Should the company continue to manufacture the part, or should it buy the part from the outside supplier ? Should Gilberto make the part or purchase it from the outside supplier?
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