Gilberto Company currently manufactures 60,000 units per year of one of its crucial parts. Variable costs are $2.30 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 $3.50 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 60,000 and buying 60,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?

the costs of producing the parts is $12,000 less than buying them from an outside vendor

Explanation:

production costs (60,000 units)

variable $2.30 per unit

fixed (avoidable) $1 per unit

fixed (unavoidable) $0.75 per unit

total $4.05 per unit

price from outside supplier $3.50 per unit

total incremental cost of buying from outside supplier = (60,000 x $3.50) + (60,000 x $0.75) = $210,000 + $45,000 = $255,000

production costs to manufacture = 60,000 x $4.05 = $243,000

the costs of producing the parts is $12,000 less than buying them from an outside vendor

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

the correct answer for apex is “ doubling a recipe and figuring out how many cups of paint to use are both examples of using math skills”.