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Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $10.40: direct labor. $14.40. variable overhead $3.40
Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $10.40: direct labor. $14.40. variable overhead $3.40 and fixed overhead. $8.40. An outside supplier has offered to sell the product to Paxton for $36.60. Compute the net incremental cost or savings of buying the component. Multiple Choice O $0 cost or savings per unit. ) 0 $3.40 cost per unit O $8.40 savings per unit. O $3.40 savings per unit. O $8.40 cost per unit
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