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Business, 24.06.2019 08:10 Remba

Haver company currently produces component rx5 for its sole product. the current cost per unit to manufacture the required 57,000 units of rx5 follows. direct materials $ 5.00 direct labor 9.00 overhead 10.00 total costs per unit $ 24.00 direct materials and direct labor are 100% variable. overhead is 80% fixed. an outside supplier has offered to supply the 57,000 units of rx5 for $20.00 per unit. required: 1. calculate the incremental costs of making and buying component rx5.

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