Compute net incremental cost or savings of buying component

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Reference no: EM131266424

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.30; direct labor, $13.30, variable overhead $2.30 and fixed overhead, $7.30. An outside supplier has offered to sell the product to Paxton for $32.20. Compute the net incremental cost or savings of buying the component. $2.30 cost per unit. $7.30 savings per unit. $0 cost or savings per unit. $7.30 cost per unit. $2.30 savings per unit.

Reference no: EM131266424

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