Paxton company can produce a component of its product:

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.00; direct labor. $13.00. variable overhead $2.00 and fixed overhead, $1.00. An outside supplier has offered to sell the product to Paxton for $31.00. Compute the net incremental cost or savings of buying the component. Multiple Choice 0 $2.00 cost per unit. $7.00 savings per unit. $0 cost or savings per unit. $7.00 cost per unit. 0000 $2.00 savings per unit