Gelb company currently manufactures 44,000 units per year of a key component for its manufacturing process. variable costs are $4.05 per unit, fixed costs related to making this component are $73,000 per year, and allocated fixed costs are $78,500 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 $3.50 per unit. calculate the total incremental cost of making 44,000 and buying 44,000 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.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Gelb company currently manufactures 44,000 units per year of a key component for its manufacturing process. variable costs are $4.05 per ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
List 5 of your personal interests. List 5 of your personal skills. Do any of your skills and interests overlap?
Answers (1)
You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of. 4 percent per month, how much will you have to deposit today?
Answers (1)
How is the GDP/National income computed by using the value-added method? Explain the difficulties and methods while calculating GDP in this process.
Answers (1)
What role do entrepreneurs play in economics? Entrepreneurs tell consumers what they should want or need. Entrepreneurs create the businesses that produce products and services that meet the wants and needs of consumers.
Answers (1)
If a bank loan officer were considering a company's request for a loan, which of the following statements would you consider to be correct?
Answers (1)
New Questions in Business
Menu costs refers to a. the distortion in incentives created by inflation when taxes do not adjust for inflation. b. resources used by people to maintain lower money holdings when inflation is high. c.
Answers (1)
Consider once again the project with the cash flows described below. Determine whether this is a simple or non - simple investment AND how many possible values of i * exist using the Accumulated Cash Flow Sign Test.
Answers (1)
Which of the following goods best fit the characteristics of a private good? a. national defense b. fire protection c. an ice-cream cone d. a professor giving a lecture in a large classroom e. disease prevention
Answers (1)
Zwick Company bought 26,500 shares of the voting common stock of Handy Corporation in January 2018. In December, Handy announced $ 205,200 net income for 2018 and declared and paid a cash dividend of $ 6 per share on all 203,000 shares of its
Answers (1)
Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct test screenings and tracking studies.
Answers (1)