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Problem 23-3A Make or buy LO A1 produces component RXS for its sole product The current cost per unt to manufecture the required 5000o units

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Problem 23-3A Make or buy LO A1 produces component RXS for its sole product The current cost per unt to manufecture the required 5000o 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 70% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $20.00 per unit. Required 1. Calculate the incremental costs of making and buying component RX5. I costs of: Making the units Buying the units Total costs

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