ully en X Homepage- Prin Managerial Acc X Chp 23 Homework х onnect.mheducation.com/flow/connect.html Saved omework i Gelb Company currently manufactures 56,500 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $83,000 per year, and allocated fixed costs are $83,500 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 $3.90 per unit. Calculate the total incremental cost of making 56,500 and buying 56,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Outside Costs to Make Costs to Buy Supplier Calculate the total incremental cost of making 56,500 units. (Round "variable cost per unit" answer to 2 decimal places.) Incremental Costs to Make Relevant Relevant Total Relevant Amount per ces Fixed Costs Costs Unit Variable cost per unit Fixed manufacturing costs 83,000 Total incremental cost to make 2$ < Costs to Make Costs to Buy> く < Prev 2 of 4 Next > on nere to search へ ロ DII F3 PrtScn F8 Home F9 End F10 F2 F4 F5 F6 F7 %24
ully en X Homepage- Prin Managerial Acc X Chp 23 Homework х onnect.mheducation.com/flow/connect.html Saved omework i Gelb Company currently manufactures 56,500 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $83,000 per year, and allocated fixed costs are $83,500 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 $3.90 per unit. Calculate the total incremental cost of making 56,500 and buying 56,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Outside Costs to Make Costs to Buy Supplier Calculate the total incremental cost of making 56,500 units. (Round "variable cost per unit" answer to 2 decimal places.) Incremental Costs to Make Relevant Relevant Total Relevant Amount per ces Fixed Costs Costs Unit Variable cost per unit Fixed manufacturing costs 83,000 Total incremental cost to make 2$ < Costs to Make Costs to Buy> く < Prev 2 of 4 Next > on nere to search へ ロ DII F3 PrtScn F8 Home F9 End F10 F2 F4 F5 F6 F7 %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:ully en X
Homepage- Prin Managerial Acc X
Chp 23 Homework
х
onnect.mheducation.com/flow/connect.html
Saved
omework i
Gelb Company currently manufactures 56,500 units per year of a key component for its manufacturing process. Variable costs are
$6.25 per unit, fixed costs related to making this component are $83,000 per year, and allocated fixed costs are $83,500 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 $3.90 per unit.
Calculate the total incremental cost of making 56,500 and buying 56,500 units. Should it continue to manufacture the component, or
should it buy this component from the outside supplier? (Round "purchase price per unit" answer to 2 decimal places.)
Complete this question by entering your answers in the tabs below.
Outside
Costs to Make Costs to Buy
Supplier
Calculate the total incremental cost of making 56,500 units. (Round "variable cost per unit" answer to 2 decimal places.)
Incremental Costs to Make
Relevant
Relevant
Total Relevant
Amount per
ces
Fixed Costs
Costs
Unit
Variable cost per unit
Fixed manufacturing costs
83,000
Total incremental cost to make
2$
< Costs to Make
Costs to Buy>
く
< Prev
2 of 4
Next >
on
nere to search
へ ロ
DII
F3
PrtScn
F8
Home
F9
End
F10
F2
F4
F5
F6
F7
%24
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