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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

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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, $7.00. 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 $2.00 cost per unit. $7.00 savings per unit $0 cost or savings per unit Multiple Choice $2.00 cost per unit. $7.00 savings per unit. $0 cost or savings per unit. 0 $7.00 cost per unit $2.00 savings per unit

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