Question: 5 Exercise 23-2 Make or buy LO P1 125 points Gelb Company currently manufactures 46.000 units per year of a key component for its manufacturing


5 Exercise 23-2 Make or buy LO P1 125 points Gelb Company currently manufactures 46.000 units per year of a key component for its manufacturing process Vanable costs are $2.95 per unit, fixed costs related to making this component are $87000 per year, and allocated fixed costs are $82,500 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 supplies for $3.70 per unit Calculate the total incremental cost of making 46.000 units and buying 46,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 46,000 units, (Round Variable cont per unitawers to decimal places) Inca Costs to Make Relevant Mount per Liit Relevant Tied Costs Total Relevant Costs Total incremental como Costs to Buy > Exercise 23-2 Make or buy LO P1 5 Gelb Company currently manufactures 46,000 units per year of a key component for its manufacturing process. Variable costs are $2.95 per unit fixed costs related to making this component are $87000 per year, and allocated fixed costs are $82.500 per year. The allocated foved costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $370 per unit 125 boints Calculate the total incremental cost of making 46,000 units and buying 46.000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Couts to Buy Outside Supplier Calculate the total incrementat cost of buying 46,000 units (Hound purchase price per unit anwwers to 2 decimal place.) Incremental Costs to buy Relevant Relevant Total Rent Amount per Feed Cost Cost D Total incremental cool to buy Cost to Mahe Outside Supplier > Exercise 23-2 Make or buy LO P1 5 125 points Gelb Company currently manufactures 46.000 units per year of a key component for its manufacturing process Variable costs are $2.95 per unit, foxed costs related to making this component are $87,000 per year, and allocated fixed costs are $82,500 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 $3.70 per unit, Calculate the total incremental cost of making 46,000 units and buying 46.000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Outside Supplier costs to Make Conts to Buy Should It continue to manufacture the component, or should it buy this component from the outside supplar? Should Gelb make the part or purchase from the outside suppler?
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