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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 54,000 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 54,000 units of RX5 follows. Direct materials Direct labor Overhead $ 4.00 8.00 9-00 21.00 Total costs per unit Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 54,000 units of RX5 for $18.00 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

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