Change industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchase the defective units as that are for $5 each. Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The incremental income or loss on reworking the units is: $32,000 income. $20,000 loss. $ 12,000 loss. $ 30,000 income. $20,000 income. Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10; direct labor, $24, and overhead, $16. An outside supplier has offered to sell the product to Axel for $45. If Wheeler buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying. $3.89 cost per unit. $2.20 savings per unit. $4.00 cost per unit. $ 4.00 savings per unit. $2.20 cost per unit