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Exercise $23-2($Algo$)$ Make or buy LO P$1$

Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $$1\mathrm{.}95$ for direct materials and $$1\mathrm{.}50$ for direct labor. Incremental overhead to make this part is $$1\mathrm{.}70$ per unit. The company can buy the part for $$5\mathrm{.}45$ per unit.

$($a$)$ Prepare a make or buy analysis of costs for this part. $($Enter your answers rounded to $2$ decimal places.$)$

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

$\backslash$table$[[($a$)$ Make or Buy Analysis,Make,Buy$],[$Direct materials,,$],[$Direct labor,,$],[$Overhead$,,],[$Cost to buy,,$],[$Cost per unit,,$],[,,],[$Cost difference,,$],[,,],[($b$)$ Company should:,,$]]$