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Gelb Company currently manufactures 59,000 units per year of a key component for its manufacturing...

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Accounting

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Gelb Company currently manufactures 59,000 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $75,500 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 $3.90 per unit. Calculate the total incremental cost of making 59,000 and buying 59,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) 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 making 59,000 unlts. (Round "varlable cost per unit" answer to 2 declmal places.) Incremental Costs to Make Relevant Relevant Amount per Fixed Costs Total Relevant Costs Unit Total incremental cost to make K Costs to Make Costs to Buy>

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