17) Paxton Company can produce a component of its product that incurs the following per unit direct materials, $11.00; direct labor, $15.00, variable overhead $4.00 and fix overhead, 59.00. An outside supplier has offered to sell the product to Paxton for $39.00. Compute the net incremental cost or savings of buying the component. A) S4.00 savings per unit. B) SO cost or savings per unit. C) $4.00 cost per unit. D) $9.00 cost per unit. E) $9.00 savings per unit. owing costs O and fixed 17) 18) Bannister Co. is thinking about having one of its products manufactured by a subconstractor. Currently, the cost of manufacturing 1,000 units follows: Direct material Direct labor Factory overhead (30% is variable) S45.000 30,000 98,000 If Bannister can buy 1,000 units from a subcontractor for $100,000, it should: A) Buy the product because total fixed and variable manufacturing costs are greater than $100,000. B) Make the product because the cost of direct material plus direct labor of manufacturing is less than $100,000 C) Buy the product because the total incremental costs of manufacturing are greater than $100,000. D) Make the product because current factory overhead is less than $100,000 E) Make the product because factory overhead is a sunk cost