Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.10; direct labor, $24.10, and incremental overhead, $8.90. An outside supplier has offered to sell the product to Wheeler for $46.16. Compute the net incremental cost or savings of buying.

Multiple Choice

• $4.92 savings per unit.

• $4.92 cost per unit.

• $3.06 cost per unit.

• $5.52 cost per unit.

• $2.30 savings per unit.