apter - 23 Homework a Saved Help 2 Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $170 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 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 $2.90 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 70,000 and buying 70,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? ints eBook Complete this question by entering your answers in the tabs below. Hint Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 70,000 units. (Round cost per unit answer to 2 decimal places.) Print References Total relevant costs Incremental Costs to Make Relevant Relevant fixed Amount per costs Unit Variable cost per unit Fixed manufacturing costs Total incremental cost to make $ 0 Costs to Buy > 2 Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $1.70 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 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 $2.90 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 70,000 and buying 70,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? ints eBook Complete this question by entering your answers in the tabs below. ber Hint Costs to Make costs to Buy Outside Supplier Calculate the total incremental cost of buying 70,000 units. (Round cost per unit answer to 2 decimal places.) Print Incremental Costs to Buy Relevant Relevant Amount per Unit fixed costs Purchase price per unit Total incremental cost to buy Total relevant costs Eeferences Cobe Company has already manufactured 16,000 units of Product A at a cost of $25 per unit. The 16,000 units can be sold at this stage for $480,000. Alternatively, the units can be further processed at a $260,000 total additional cost and be converted into 5,600 units of Product B and 11,500 units of Product C. Per unit selling price for Product B is $104 and for Product C is $52. 1. Prepare an analysis that shows whether the 16,000 units of Product A should be processed further or not. Sell as is Process Further ok Sales Relevant costs: A nt Total relevant costs Income (loss) int Incremental net income (or loss) if processed further ences The company should 2 Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $1.70 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 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 $2.90 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 70,000 and buying 70,000 units. Should the company continue to manufacture the part or should it buy the part from the outside supplier? oints eBook Complete this question by entering your answers in the tabs below. Hint Costs to Make Costs to Buy Outside Supplied Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Print Should Gilberto make the part or purchase it from the outside supplier? References