Davis Company currently buys a component part for $6.80 per unit. Davis estimates that making the part would require $5.30 per unit of direct materials and $2.80 per unit of direct labor. Davis normally applies overhead using a predetermined overhead rate of 125% of direct labor cost. Davis estimates incremental overhead of $2.30 per unit to make the part. The net incremental cost or savings of making the component is: Multiple Choice $140 cost per unit $3.60 cost per unit $4.60 cost per unit $360 savings per unit $4 60 savings per unit