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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 52,000 units of RX5 follows. Direct

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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 52,000 units of RX5 follows. Direct materials Direct labor Overhead S 4.00 8.00 9.00 Total costs per unit $ 21.00 Direct materials and direct labor are 100% variable Overhead is 70% fixed. An outside supplier has offered to supply the 52,000 units of RX5 for $18.00 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 costs Should the company continue to manufacture the part, or should it buy the part from the outside supplier? References eBook & Resources

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