Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 67,000 units of RX5 follows. Direct materials $ 4.00 Direct labor 8.00 Overhead 9.00 Total costs per unit 21.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 67,000 units of RX5 for $19.00 per unit.

Required:

1. Calculate the incremental costs of making and buying component RX5.