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 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
Foot Friendly is a manufacturer of athletic shoes. It has released an improved version of its premier running shoe in markets in which the company already operates.
Answers (1)
What is the dirty price of a bond? the bond's price less an adjustment for changes in interest rates the bond's price based only on the bond's yield the bond's price based only on coupon payments the bond's actual cash price
Answers (1)
Gaggle, Inc., and Chirp Chirp, Inc., have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to review the merits of the award. a. True. b. False.
Answers (1)
A short-run Phillips curve shows an inverse relationship between interest rates and borrowing A. inflation and unemployment B. income and consumption C. prices and quantity demanded D. inputs and outputs
Answers (1)
James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over for his father in the partnership and was well qualified to do the work his father had done.
Answers (1)
New Questions in Business
Which job title would be given to someone responsible for supervising production in a manufacturing setting?
Answers (1)
If a management team wishes to boost the company's stock price, then it should consider actions to
Answers (1)
On March 15, Year 1, Kathleen Corp. adopted a plan to accumulate $1,000,000 by September 1, Year 5. Kathleen plans to make 4 equal annual deposits to a fund that will earn interest at 10% compounded annually.
Answers (1)
A natural monopoly's preemption of entry by other firms by exploiting its economies of scale is an example of
Answers (2)
The best way for a franchisee and franchisor to evaluate each other is Question options: for the potential franchisee to go to a sales presentation. for the potential franchisee to spend time working in a franchise location.
Answers (1)