Ch 23: Relevant Costing for Managerial Decisions H
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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...
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...