Hayes Inc. provided the following information for the year 2015:

Beginning inventory	170 units
Units produced	820 units
Units sold	869 units
Selling price	$220/unit
Direct materials	$42/unit
Direct labor	$23/unit
Variable manufacturing overhead	$22/unit
Fixed manufacturing overhead	$31,980/yr
Variable selling/administrative costs	$15/unit
Fixed selling/administrative costs	$22,500/yr

What is the unit product cost for the year using absorption costing?

$126

$87

$102

$124

Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.10; direct labor, $24.10, and overhead, $16.10. An outside supplier has offered to sell the product to Wheeler for $46.16. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying.

$4.92 savings per unit.

$4.92 cost per unit.

$2.30 cost per unit.

$5.52 cost per unit.

$2.30 savings per unit.