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Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $9.40; direct labor, $13.40, and incremental overhead
Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $9.40; direct labor, $13.40, and incremental overhead $2.40. An outside supplier has offered to sell the product to Paxton for $32.60. Compute the net incremental cost or savings of buying the component. Multiple Choice
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