MC Qu. 76 Paxton Company can produce a component of... Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct labor, $14, variable overhead $3 and fixed overhead, $8. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component. Multiple Choice O $5.00 savings per unit O $3.00 cost per unit. O so cost or savings per unit. O $5.00 cost per unit 0 $3.00 savings per unit MC Qu. 76 Paxton Company can produce a component of... Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct labor, $14, variable overhead $3 and fixed overhead, $8. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component. Multiple Choice O $5.00 savings per unit O $3.00 cost per unit. O so cost or savings per unit. O $5.00 cost per unit 0 $3.00 savings per unit