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56,) Gecko Company is evaluating the...

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Accounting

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56,) Gecko Company is evaluating the use of a supplier versus making the wheels for its skateboards internally. The currently manufactured wheels have a variable unit cost of $2. Fixed costs ane $16,000 per month, however, 25% can be eliminated if wheels are no longer produced. A supplier has offered to produce this part for $3 per wheel and can produce the 3,200 wheels for the 800 skateboards needed monthly. Should Gecko outsource wheels or make them internally? A. Outsource because the incremental cost savings is $12,800. B. Make the product because the incremental cost savings is $3,200 Outsource because the incremental cost savings is $800 Outsource because the incremental cost savings is $8,800 O3 Post-test-C

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