Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.90; direct labor, $14.90, variable overhead $3.90 and fixed overhead, $8.90. An outside supplier has offered to sell the product to Paxton for $38.60. Compute the net incremental cost or savings of buying the component Multiple Choice $8.90 savings per unit $3.90 cost per unit $0 cost or savings per unit. $3.90 savings per unit $8.90 cost per unit