70.2K

Verified Solution

Link Copied!

Gilberto Company currently manufactures 86,000 units per year of one of its crucial parts Variable costs are $300 per unit, fixed costs related to making this part are 596.000 per year, and allocated fixed costs are $83,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.20 per unit guaranteed for a three-year period Calculate the total incremental cost of making 86,000 and buying 86.000 units Should the company continue to manufacture the part or should it buy the part 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 86,000 units. (Pound cost per unit answers to 2 decimal places.) Incremental Costs to Make Relevant Amount Relevant Fixed Casts Total Relevant Costs per Unit Variable cost per unit Fixed manufacturing costs Total incremental cost to make Costs to Buy > Gilberto Company currently manufactures 86,000 units per year of one of its crucial parts Variable costs are $3.00 per unit, fixed costs related to making this part are $96.000 per year and allocated fixed costs are $83,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4 20 per unit guaranteed for a three-year period Calculate the total incremental cost of making 86,000 and buying 86,000 units Should the company continue to manufacture the part, or should it buy the part 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 buying 86,000 units. (Round cost per unit answers to 2 decimal places.) Incremental Costs to Buy Relevant Amount Relevant Fixed Costs Total Relevant Costs per Unit Purchase price par unit Total incremental cost to buy costs to Make Outside Suppliers Gilberto Company currently manufactures 86,000 units per year of one of its crucial parts Variable costs are $3.00 per unit, fixed costs related to making this part are $96,000 per year, and allocated fixed costs are $83,000 per year Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.20 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 86,000 and buying 86,000 units. Should the company continue to manufacture the part or should it buy the part from the outside supplier? Complete this question by entering your answers in the tabs below. Outside costs to Make Costs to Buy Supplier Outside Supplier Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Should Giberto make the part or purchase it from the outside supplier? Costs to Buy

Answer & Explanation Solved by verified expert

See Answer