Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 59,000 units of RX5 follows.

Direct materials

$

5.00

Direct labor

9.00

Overhead

10.00

Total costs per unit

24.00

Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 59,000 units of RX5 for $19.00 per unit.

Required:

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

34 (Ch 10-12 Saved Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 59.000 units of RX5 follows. $5.e0 9.00 oirect materials Direct labor Overhead Total costs per unit 24.09 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 59,000 units of RX5 for $19.00 per unit Required: 1. Calculate the incremental costs of making and buying component RX5 Making the units Buying the units Total costs of: Total costs Should the company continue to manufacture the part or should t buy the pant from the outside supplier