Question 22

3 Required

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 56,000 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 70% fixed. An outside supplier has offered to supply the 56,000 units of RX5 for $18.00 per unit. Required: 1. Determine the total incremental cost of making 56,000 units of RX5. 2. Determine the total incremental cost of buying 56.000 units of RX5. 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total incremental cost of making 56,000 units of RXS. Incremental cost of making RX5 Making the units Total incremental cost of making 56,000 units $ 0 Required 2 > Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 56,C units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit $ 5.00 9.00 19.00 $24.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 56,000 units of RX5 for $18.00 per unit. Required: 1. Determine the total incremental cost of making 56,000 units of RX5. 2. Determine the total incremental cost of buying 56,000 units of RX5 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total incremental cost of buying $6,000 units of RX5. Incremental cost of buying RX5 Buying the units Total incremental cost of buying 56,000 units Required 1 Required a > Haver Company currently produces component RXS for its sole product. The current cost per unit to manufacture the required 56,000 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 70% fixed. An outside supplier has offered to supply the 56,000 units of RX5 for $18.00 per unit Required: 1. Determine the total incremental cost of making 56,000 units of RX5. 2. Determine the total incremental cost of buying 56,000 units of RX5 3. Should the company make or buy RXS? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the company make or buy RX5? Should the company make or buy RX5? (Required 2 Required