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gelb company currently manufactures 40.000 units per year of a key component for its manufacturing...

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Accounting

gelb company currently manufactures 40.000 units per year of a key component for its manufacturing process. variable cost are $1.95 per unit. fixed cost related to making this component are $65.000 per year, and allocated fixed cost are $58.500 per year. the allocated fixed costs are unavidable whether the company makes or buy this component. the company is considering buying this component from a supplier for $3.50 per unit. should it continue to manufacture th component, or should it buy this component from the outside supplier? support your decision with analysis of the data provided.

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