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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.80; direct labor, $14.80, and incremental overhead

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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.80; direct labor, $14.80, and incremental overhead $3.80. An outside supplier has offered to sell the product to Paxton for $38.20. Compute the net incremental cost or savings of buying the component. Multiple Choice $3.80 cost per unit. $8.80 savings per unit

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