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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 70,000 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 70,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 4.00 8.00 9.00 21.00 5 points Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 70,000 units of RX5 for $20.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Buying the units $ Total incremental costs of: Making the units Total direct materials $ 244,000 Total direct labor 488,000 Variable overhead costs 122,000 Cost to buy the units Total costs $ 854,000 Should the company continue to manufacture the part, or should it buy the part from the outside supplier? $ 1,159,000 1,159,000 Make the units

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