Problem 10-3A Make or buy Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 59,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 5.00 9.00 10.00 24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 59,000 units of RX5 for $18.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5. Total incremental costs of: Making the units Buying the units Total costs Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Edgerron Company is able to produce two products, and B with the same machine in its factory The following Information is available $250 Contributiongtx per unit te hours to producent Products 5200 85 5115 2.4 hours 650 units $92 1.0 hours 250 units The company presently operates the machine for a single eight-hour shift for 22 working days each month Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month This change would require $11.500 additional foed costs per month(Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) 1. Determine the contribution margin per machine hour that each product generates Product G Contribution margin per unit Product B Contribution margin per machine hour Product Total Product 250 650 Maximum number of units to be sold Hours required to produce maximum units 2. How many units of Product and Product should the company produce in continues to operate with only one shit? How much total contribution margin does this mix produce each month Product Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin perunt Total contribution margin-one shit 3. If the company adds another how many units of Product G and Product should produce? How much total contribution margin would this mix produce each month? Product Producto Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin-two site 4. Suppose that the company determines that can increase Products maximum sales to 700 units per month by spending $10.500 per month in marketing efforts. Should the company pursue this strategy and the doublesh Product Producto Total Hours dedicated to the production of each product Units produced for most profitable sales mix Canlibution margin perunt Totalconibution margin-two shifts and marketing campaign