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Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $11.00; direct labor, $25.00, and overhead, $17.00. An outside supplier
Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $11.00; direct labor, $25.00, and overhead, $17.00. An outside supplier has offered to sell the product to Wheeler for $48.55. If Wheeler buys from the supplier, it will still incur 45% of its overhead cost. Compute the net incremental cost or savings of buying. Multiple Choice $3.20 cost per unit. $5.11 savings per unit. $5.11 cost per unit. $4.90 cost per unit
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