(Solved):Gilberto Company currently manufactures 80,000units per year of one of its crucial parts….



Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $1.80 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 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 $3.00 per unit guaranteed

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