Question: Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Gilberto


Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $1.50 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 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 $3.30 per unit guaranteed for a three-year period Calculate the total incremental cost of making 80,000 and buying 80,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? 3 Answer is not complete. Complete this question by entering your answers in the tabs below Costs to Make Costs to Buy Supplier Calculate the total incremental cost of making 80,000 units. (Round cost per unit answer to 2 decimal places.) Costs to Make Relevant Amount per Total relevant costs Relevant fixed costs 1.500 Variable cost per unit Fixed manufacturing costs 0,000 80,000 80,000 Total incremental cost to make Retu Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $1.50 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 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 $3.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 80,000 and buying 80,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Answer is not complete. Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Supplier Outside Calculate the total incremental cost of buying 80,000 units. (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy RelevantTotal relevant Relevant Amount per fixed costs S264,000 Purchase price per unit s3.30 264,000 Total incremental cost to buy Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $1.50 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 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 $3.30 per unit guaranteed for a three-year period Calculate the total incremental cost of making 80,000 and buying 80,000 units. Should the company continue to manufacture the part or should it buy the part from the outside supplier? Answer is not complete Complete this question by entering your answers in the tabs below. Maless to Cutside Costs to Make Costs to Buysupplier Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Should Giliberto make the part or purchase i from the outside supplier? Outside Supplier Costs to Buy
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
