Calculating incremental costs.

Haver Company currently produces component RX5 for Its sole product. The current cost per unit to manufacture the required 54,000 units of RX5 follows. Direct materials Direct labor 8.08 Overhead 9. 68 Total costs per unit 21. 80 Direct materials and direct labor are 100% variable. Overhead Is 80% fixed. An outside supplier has offered to supply the 54,000 units of RX5 for $19.00 per unit. Required: 1. Calculate the Incremental costs of making and buying component RX5 Total incremental costs of: Making the units Buying the units Total direct materials Total direct labor Variable overhead costs Cost to buy the units 1.028.000 Total costs 1.026.500 Should the company continue to manufacture the part, or should it buy the part from the putside supplier? Make the units