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Haver company currently produces component RX5 for its sole product. Haver Company currently produces component RXS for its sole product. The current cost per unit

Haver company currently produces component RX5 for its sole product. image text in transcribed
Haver Company currently produces component RXS for its sole product. The current cost per unit to manufacture the required 57000 units of RX5 follows Direct materials Direct labor Overhead Total costs per unit $ 4.00 8.00 9.00 21.00 Direct materials and direct la or are 100% variable. Overhead is 80% f ed. An outside suppler has offered to supply the 570 0 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 shouid it buy the part from the outside Prev or 3 Next

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