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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 65,000 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 65,000 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 70% fixed. An outside supplier has offered to supply the 65,000 units of RX5 for $19.00 per unit. Required 1. Calculate the incremental costs of making and buying component RX5. Total incremental costs of: Making the unitsBuying the units otal direct materials otal direct labor ariable overhead costs ost to buy the units 260,000 520,000 195,000 1,235,000 1,235,000 Make the units Total costs 975,000$ Should the company continue to manufacture the part, or should it buy the part from the outside supplier

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