Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 58,000 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 58,000 units of RX5 for $19.00 per unit.

Required:

1.

Calculate the per unit incremental costs of making and buying component RX5.