Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10; direct labor, $24, and overhead, $16. An outside supplier has offered to sell the product to Wheeler for $46. If Wheeler buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying.

Seleccione una:

$4.00 savings per unit.

$1.20 cost per unit.

$2.20 savings per unit.

$2.20 cost per unit.

$4.00 cost per unit.