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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.50; direct labor, $13.50, and incremental overhead
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.50; direct labor, $13.50, and incremental overhead $2.50. An outside supplier has offered to sell the product to Paxton for $33.00. Compute the net incremental cost or savings of buying the component. Multiple Choice $0 cost or savings per unit. $2.50 savings per unit. $7.50 savings per unit. $7.50 cost per unit. $2.50 cost per unit
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