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Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $10.50; direct labor, $14.50, and incremental

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Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $10.50; direct labor, $14.50, and incremental overhead $3.50 An outside supplier has offered to sell the product to Paxton for $37.00. Compute the net incremental cost or savings of buying the component Multiple Choice $2.50 cost per unit. $8.50 savings per unit 50 cost or savings per unit. $8.50 cost per unit $3.50 savings per unit

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