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Calculating incremental costs. newconnect.mheducation.com/flow/connect.html Exam 3 Part 2 1 Saved Haver Company currently produces component RX5 for its sole product. The current cost per unit

Calculating incremental costs.

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newconnect.mheducation.com/flow/connect.html Exam 3 Part 2 1 Saved 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. points Direct materials $ 4.00 Direct labor 8.00 Overhead 9.00 Total costs per unit 21.06 Book 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. Print Required: 1. Calculate the incremental costs of making and buying component RX5. References Total incremental costs of: Making the units Buying the units Total costs Should the company continue to manufacture the part, or should it buy the part from the outside supplier

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