Business, 01.03.2021 22:00 justyne2004

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 50,000 units of RX5 follows. Direct materials $ 5.00Direct labor 8.00Overhead 9.00Total costs per unit $ 22.00Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $18.00 per unit. Required:1. Determine the total incremental cost of making 50,000 units of RX5.2. Determine the total incremental cost of buying 50,000 units of RX5.3. Should the company make or buy RX5

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

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