TB MC Qu. 23-75 (Algo) Wheeler Company can produce a product that...

Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.10; direct labor, $23.10, and incremental overhead, $8.60. An outside supplier has offered to sell the product to Wheeler for $42.56. Compute the net incremental cost or savings of buying.

Multiple Choice

$3.75 savings per unit.

$3.75 cost per unit.

$1.76 cost per unit.

$4.32 cost per unit.

$1.30 savings per unit.