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Problem 23-3A Make or buy LO P1, A1 Haver Company currently produces component RX5 for its sole product The current cost per unit to manufacture

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Problem 23-3A Make or buy LO P1, A1 Haver Company currently produces component RX5 for its sole product The current cost per unit to manufacture the required 60,000 units of RX5 follows. Direct materials Direct labor Overhead S 400 8.00 9.00 Total costs per unit S 21.00 Direct materals and direct labor are 1 00% variable. Overhead is 80% fixed An outside supplier has offered to supply the 60,000 units of RX5 for $20.00 per unit Required: 1. Calculate the incremental costs of making and buying component RX5 Total incremental costs of Making the units Buying the units otal direct materials otal direct labor ariable overhead costs Total costs Should the company continue to manufacture the part, or should it buy the part from the outside supplier

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