Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the

| September 28, 2018

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 58,000 units of RX5 follows. Direct materials $ 5.00Direct labor 9.00 Overhead 10.00 Total costs per unit $ 24.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 58,000 units of RX5 for $19.00 per unit. Required:1.Calculate the per unit incremental costs of making and buying component RX5.

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