Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.00; direct labor, $24.00; and incremental overhead, $8.80. An outside supplier has offered to sell the product to Wheeler for $45.00. Compute the net incremental cost or savings of buying.

Multiple Choice

• $2.20 cost per unit.

• $4.00 savings per unit.

• $4.00 cost per unit.

• $2.20 savings per unit.

• $3.80 cost per unit.