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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 50,000 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 50,000 units of RX5 follows. Direct materials Direct labor Overhead $5.00 8.00 9.00 Total costs per unit 22.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $18.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Answer is not complete. $ $ Buying the units 250,000 250,000 Making the Total incremental costs of: units Variable overhead costs 90,000 Total direct materials 250,000 Total direct labor 400,000 Cost to buy the units 22 Total costs 740,022 Should the company continue to manufacture the part, or should it buy the part from the outside supplier? $ 500,000 Make the units

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