Sand company

Sand Company can produce a product that incurs the following costs per unit: direct materials, $9.20; direct labor, $23.20, and overhead, $15.20. An outside supplier has offered to sell the product to Sand for $42.16. If Sand buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying. $ 1.40 savings per unit $1.40 cost per unit $3.11 cost per unit O $3.11 savings per unit