Wheeler Company can produce a product that incurs the following costs per unit: 

direct materials, $9.20; direct labor, $23.20 and overhead, $15.20.

 A third-party vendor has offered to sell the product to Wheeler for $42.16. If Wheeler buys from the supplier, it will still incur 45% of its overhead costs.

 Calculate the net incremental cost or savings of the purchase.

Answer rating: 100% (QA)

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