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Santos Company currently manufactures one of its crucial parts at a cost of $4.15 per...

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Accounting

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Santos Company currently manufactures one of its crucial parts at a cost of $4.15 per unit. This cost is based on a normal production rate of 40,000 units per year. Variable costs are $2.40 per unit, fixed costs related to making this part are $40,000 per year, and allocated fixed costs are $30,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Santos is considering buying the part from a supplier for a quoted price of $3.60 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 40,000 units. (Omit the $" sign in your response.) Total incremental cost Calculate the total incremental cost of buying 40,000 units. (Omit the "$" sign in your response.) Total incremental cost Should the company continue to manufacture the part, or should it buy the part from the outside supplier? O Buy O Make

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