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Note: Emer your arewer pumded te $2$ desimat placest.Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $$1\mathrm{.}90$ for direct

materials and $$1\mathrm{.}45$ for direct labor. Incremental overhead to make this part is $$1\mathrm{.}68$ per unit. The company can buy the part for $$5\mathrm{.}32$

per unit.

$($a$)$ Prepare a make or buy analysis of costs for this part.

Note: Enter your answers rounded to $2$ decimal places.

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