Incremental costs of making
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 69,000 units of RX5 follows.
Direct materials and direct labor are 100% variable. Overhead is 60% fixed. An outside supplier has offered to supply the 69,000 units of RX5 for $21.00 per unit.
Calculate the per unit incremental costs of making and buying component RX5.
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Accounts payable $ 184,400 $ 150,000 $160,000 Accounts receivable, net 206,000 194,000 220,000 Interest Income 15,000 14,000 26,000 Accum.
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