Required: 1. Determine the total incremental cost of making 63,000 units of RX5. 2. Determine the total incremental cost of buying 63,000 units of RX5. 3. Should the company make or buy RX5?

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 63,000 units of RX5 follows. Direct materials Direct labor Overhead $ 4.00 8.00 9.00 $ 21.00 Total costs per unit Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 63,000 units of RX5 for $18.00 per unit. Determine the total incremental cost of making 63,000 units of RX5. Incremental cost of making RX5 Making the units Total incremental cost of making 63,000 units Determine the total incremental cost of buying 63,000 units of RX5. Incremental cost of buying RX5 Buying the units Total incremental cost of buying 63,000 units Should the company make or buy RX5? Should the company make or buy RX5