Question
Nelnet Industries manufactures a piston that is used to produce engines and incurs the following costs per piston: direct materials, $9.60; direct labor, $13.60,
Nelnet Industries manufactures a piston that is used to produce engines and incurs the following costs per piston: direct materials, $9.60; direct labor, $13.60, and incremental overhead $2.60. An outside supplier has offered to sell the pistons to Nelnet for $33.40. Compute the net incremental cost or savings of buying the piston. OA. SO cost or savings per piston. OB. $7.60 cost per piston. OC. $2.60 cost per piston. OD.$7.60 savings per piston. OE. $2.60 savings per piston.
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