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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 53,000 units of RX5 follows. Direct
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 53,000 units of RX5 follows. Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 53,000 units of RX5 for $18.00 per unit. Required: 1. Determine the total incremental cost of making 53,000 units of R5. 2. Determine the total incremental cost of buying 53,000 units of RX5. 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below. Determine the total incremental cost of buying 53,000 units of RX5
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