Problem 10-3A Make or buy LO A1 Haver Company currently produces component RXS for its...
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Problem 10-3A Make or buy LO A1 Haver Company currently produces component RXS for its sole product. The current cost per unit to manufacture the required 63,000 units of RX5 follows. Direct materials 5.00 Direct labor Overhead Total costs per 24.00 unit 9.00 10.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 63,000 units of RX5 for $20.00 per unit Required: 1. Calculate the incremental costs of making and buying component RX5. Total incremental costs of. Making the Buying the units units Total costs Should the company continue to manufacture the part, or should it buy the part from the outside supplier
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