Paxton company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct labor, $14, variable overhead $3 and fixed overhead, $8. an outside supplier has offered to sell the product to paxton for $32. compute the net incremental cost or savings of buying the component

If Paxton accepts the offer to buy the component from the outside supplier will save US$ 3 per unit.

Explanation:

1. Let's check the information provided to answer the question correctly:

Costs per unit of the component of Paxton Company:

Direct Materials = US$ 10

Direct Labor = US$ 14

Variable overhead = US$ 3

Fixed overhead = US$ 8

Total costs per unit = 10 + 14 + 3 + 8 = 35

2. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component.

Savings per unit = Costs per unit of the component produced by Paxton Company - Costs per unit of the component produced by an outside supplier

Savings per unit = 35 - 32

Savings per unit = US$ 3

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.