Answer:
Explanation:
                    cost of making in-house
Variable cost  = 1.95 * 65,000 = 126,750
Related fixed cost =                      75,000
Unavoidable fixed cost=               62,000
Total cost of manufacturing =      263,750.
                          cost of buying
Unit cost = 3.25*65,000 =            211,250
Unavoidable fixed cost =               62,000
Total cost of buying =                     273,250   .
Cost of buying is higher than the cost of making  
Incremental cost  buying = 273,250-263,250 = 9,500    
<u>Recommendation</u>        
Gilberto should manufacture in - house instead of buying.