?Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 68,000 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 80% fixed. An outside supplier has offered to supply the 68,000 units of RX5 for $19.00 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