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Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.30; direct labor, $23.30, and overhead, $15.30. An outside supplier
Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.30; direct labor, $23.30, and overhead, $15.30. An outside supplier has offered to sell the product to Wheeler for $43.28. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying.
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