Question: 1 Exercise 10-2 (Static) Make or buy LO P1 Doods Gelb Company currently makes a key part for its main product. Making this port incurs
1 Exercise 10-2 (Static) Make or buy LO P1 Doods Gelb Company currently makes a key part for its main product. Making this port incurs per unit variable costs of $1.20 for direct materials and $0.75 for direct labor. Incremental overhead to make this part is $140 per unit. The company can buy the part for $3.50 per unit 6) 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? Buy $ (a) Make or buy Analysis Direct materials Direct labor Overhead Cost to buy Cost pernil Make 1.20 0.75 1.40 Cost difference (b) Company should
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