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Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs are $1.95 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $58,500 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 $3.50 per unit. Calculate the total incremental cost of making 40,000 units and buying 40,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 40,000 units. (Round "variable cost per unit" answers to 2 decimal places Total Relevant Incremental Costs to Make Relevant Amount per Relevant Fixed Unit Costs 1957 65 000 S Variable cost per unit Total manufacturing cost per unit 78.000 5 000 Total incremental cost to make S 143 000 Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs $1.95 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $58,500 pery allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 40,000 units and buying 40,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Cots to Buy Outside Supplier Calculate the total incremental cost of buying 40,000 units. (Round "purchase price per unit" answers to 2 decimal places.) Incremental Costs to Buy Relevant Amount Relevant Fixed per Unit Costs 350 s Total Relevant Costs 140,000 100 000 Purchase price per unit Purchase price per unit Total incremental cost to buy 280 000 Outside Super Gelb Company currently manufactures 40.000 units per year of a key component for its manufacturing process. Variable costs ar $1.95 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $58,500 per yea allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buyingt component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 40,000 units and buying 40,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Should it continue to manufacture the component, or should it buy this component from the outside supplier? Should Gelb make the part of purchase it from the outside supplier? Buy

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