| 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. | |
Check my work Exercise 23-1 Make or buy LO P1 4 points Gilberto Company currently manufactures...
Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 60,000 units per year of one of its crucial parts. Variable costs are $160 per unit foxed costs related to making this part are $60,000 per year, and allocated fixed costs are $30,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $280 per unit guaranteed for a...
Exercise 10-4 Make or buy decision LO A1 Gilberto Company currently manufactures 60,000 units per year of one of its crucial parts. Variable costs are $2.10 per unit, fixed costs related to making this part are $60,000 per year, and allocated fixed costs are $45,000 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 $3.30 per unit guaranteed for a...
Check my wo 2 Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fixed costs related to making this part are $94,000 per year, and allocated fixed costs are $81,00 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 $4.10 per unit guaranteed for a three-year period. 4 points...
Gilberto Company currently manufactures 84,000 units per year of
one of its crucial parts. Variable costs are $2.90 per unit, fixed
costs related to making this part are $94,000 per year, and
allocated fixed costs are $81,000 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 $4.10 per unit guaranteed for a three-year
period.
Calculate the total incremental cost of...
Gilberto Company currently manufactures 89.000 units per year of one of its crucial parts. Variable costs are $3.15 per unit, fixed costs related to making this part are $99.000 per year, and allocated fixed costs are $86,000 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 $4.35 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $1.50 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 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 $3.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per unit, fixed costs related to making this part are $98,000 per year, and allocated fixed costs are $85,000 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 $4.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Gilberto Company currently manufactures 80.000 units per year of one of its crucial parts. Variable costs are $2.70 per unit, fixed costs related to making this part are $90,000 per year, and allocated fixed costs are $77,000 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 $3.90 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $2.40 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 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 $3.50 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fixed costs related to making this part are $75,000 per year, and allocated fixed costs are $62,000 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 $3.25 per unit guaranteed for a three-year period. Calculate the total incremental cost of...