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Business, 15.04.2020 03:59 jep88

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.90; direct labor, $13.90, variable overhead $2.90 and fixed overhead, $7.90. An outside supplier has offered to sell the product to Paxton for $34.60. Compute the net incremental cost or savings of buying the component.

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