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Check my work Exercise 23-1 Make or buy LO P1 4 points Gilberto Company currently manufactures 84,000 units per year of one oComplete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate theCalculate the total incremental cost of making 84,000 and buying 84,000 units. Should the company continue to manufacture theComplete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Should the com

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Answer #1
Costs to make :
Incremental Costs to make
Relevant amount per unit Relevant fixed costs Total relevant costs
Variable cost 2.90 243600
Fixed manufacturing costs 94000
Total incremental cost to make 337600
Costs to Buy :
Incremental Costs to Buy
Relevant amount per unit Relevant fixed costs Total relevant costs
Purchase price 4.10 344400
Total incremental cost to buy 344400
Should Gilberto make the part or purchase it from the outside supplier ? Make
Reason : Gilberto should make the part as it would cost less than buying the same.
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