Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 62,000 units of RX5 follows.

Direct materials	$	5.00
Direct labor		9.00
Overhead		10.00
Total costs per unit		24.00

Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 62,000 units of RX5 for $20.00 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?