Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs are $1.95 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $58, 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.
a. Calculate the total incremental cost of making 40,000 units. (Round "variable cost per unit" answer to 2 decimal places.)
b. Calculate the total incremental cost of buying 40,000 units. (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 40,000 units per year of a key component for its manufacturing process. Variable costs are $1.95 per ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Assume that the one component unit had program revenues of $47,600 and expenses of $64,000 and spent $10,900 for land during Year 4. However, it should have been handled as a blended component unit, not as a discretely presented component unit.
Answers (1)
Sarah's gross pay is $5,000. She had $1,400 taken out of that amount; $1,050 is in taxes and $350 is for savings and retirement funds. Which number corresponds to the amount for deductions?
Answers (1)
The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjustment.
Answers (1)
What is the YTM of a bond if it is sold for $1,029.33, pays a semi-annual coupon of $40, and matures in 15 years? Round to the nearest hundredth percent. Do not include a percent sign in your answer.
Answers (1)
A customer sells 1 WL September 100 call for 10 and buys 100 shares of WL stock at 105. The customer will break even at what market price? (A) 90 (B) 95 (C) 110 (D) 115
Answers (1)
New Questions in Business
Potanta is a company that manufactures herbal soaps. Over the years, the availability of aloe vera pulp, which is the keyingredient of the company's best-selling aloe vera soaps, has reduced.
Answers (1)
An advertiser enables target cost-per-acquisition (cpa) bidding and notices that conversions decrease. what might cause this?
Answers (1)
A trigger strategy is a strategy that: A. is not relevant to oligopolies. B. determines when to enter an industry. C. depends on an opponent's past decisions. D. tells a business to leave the industry because the price is below the AVC.
Answers (1)
What is the effect on the supply curve for skateboards if the government implements a tax on the manufacturing process?
Answers (1)
Cost of goods sold is: an asset account. a revenue account. an expense account. a permanent equity account.
Answers (1)