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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.60; direct labor, $14.60, and incremental overhead

image text in transcribed Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.60; direct labor, $14.60, and incremental overhead $3.60. An outside supplier has offered to sell the product to Paxton for $37.40. Compute the net incremental cost or savings of buying the component. Multiple Choice $0 cost or savings per unit. $3.60 savings per unit. $8.60 cost per unit. $3.60 cost per unit. $8.60 savings per unit

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