Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 51,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 4.00 8.00 9.00 21.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 51,000 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? Harold Manufacturing produces denim clothing. This year, it produced 5,100 denim jackets at a manufacturing cost of $41.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. 1. Jackets can be sold to a secondhand clothing shop for $8.00 each. 2. Jackets can be disassembled at a cost of $31,500 and sold to a recycler for $12.00 each. 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,100 jackets into only 3,030 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,100, but the jackets can then be sold for their regular price of $40.00 each. Required: 1. Calculate the incremental income. Alternative 1 Sell to a second- hand shop Alternative 2 Alternative 3 Disassemble and Rework and sell at sell to a recycler regular prices Incremental revenue Incremental costs Incremental income