Haver Company currently pays an outside supplier $$27$ per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method $1$ for making the part would require direct materials of $$11$ per unit, direct labor of $$14$ per unit, and incremental overhead of $$3$ per unit. Method $2$ for making the part would require direct materials of $$11$ per unit, direct labor of $$8$ per unit, and incremental overhead of $$7$ per unit.

Required:

$1.$ Compute the cost per unit for each alternative method of making the part.

$2.$ Should Haver make or buy the part? If Haver makes the part, which production method should it use?