Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.70; direct labor, $24.70, and overhead, $16.70. An outside supplier has offered to sell the product to Wheeler for $48.32. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying.

MC Qu. 75 Wheeler Company can produce a product that.. Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.70; direct labor, $24.70, and overhead, $16.70. An outside supplier has offered to sell the product to Wheeler for $48.32. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying. points 01:05:11 Multiple Choice $2.90 cost per unit. $5.61 savings per unit. $5.61 cost per unit. $6.24 cost per unit. $2.90 savings per unit