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ACCT 2302 Ch 23 Relevant Costing for Managerial Decisions Homework.

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Ch 23: Relevant Costing for Managerial Decisions Homework 1 1. Gilberto Company currently manufactures 68,000 units per year of one of its crucial parts. Variable costs are $2.10 per unit, fixed costs related to making this part are $78,000 per year, and allocated fixed costs are $65,000 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 $3.35 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 68,000 and buying 68,000 units. Should the company continue to manufacture the p

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