Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $9.40, direct labor. $13.40, variable overhead $2.40 and fixed overhead, $7.40. An outside supplier has offered to sell the product to Paxton for $3260. Compute the net incremental cost or savings of buying the component Multiple Choice O $240 cost per unit $7.40 savings per unit. $0 cost or savings per unit $7.40 cost per unit $2.40 savings per unit