Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $11; direct labor, $20, 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 35% of its overhead cost. Compute the net incremental cost or savings of buying.

Select one:

$1.20 cost per unit.

$2.20 savings per unit.

$2.20 cost per unit.

$4.00 savings per unit.

$4.00 cost per unit.

$4.60 savings per unit.

$4.60 cost per unit.