23.3

Haver Company currently produces component R 5 for its sole product. The current cost per unit to manufacture the required 62,000 units of RX5 follows. Direct materlals and direct labor are 100% varlable. Overhead is 80% fixed. An outside supplier has offered to supply the 62,000 units of RX5 for $19.00 per unit. Requlred: 1. Determine the total Incremental cost of making 62,000 units of RX5. 2. Determine the total Incremental cost of buying 62,000 units of RX5. 3. Should the company make or buy RX5? Determine the total incremental cost of making 62,000 units of RX5. Determine the total incremental cost of buying 62,000 units of RX5. Should the company make or buy RX5