Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $9.10; direct labor, $13.10, variable overhead $2.10 and fixed overhead, $7.10. An outside supplier has offered to sell the product to Paxton for $31.40. Compute the net incremental cost or savings of buying the component.

IV. VI. MISCELUVIISIR . Puto Company our produce a component of its product that incues the following costs per un direct materials, $9.70, direct labor, 513.10, variable overhead $2.10 and fixed overhead $710. An abide pple as ofered to set the product to Paxton for $310 Compute the net incremental cost or savings of buying the component