Return to ques Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $10.70, direct labor $1470, variable overhead $3.70 and fixed overhead, $8.70. An outside supplier has offered to sell the product to Paxton for $37.80. Compute the net incremental cost or savings of buying the component Multiple Choice $3.70 cost per unit $8.70 savings per unit $0 cost or savings per unit $8.70 cost per unit $370 Savings per unit