8.00 Direct materials......... Direct labor........ Overhead Total cost per unit.. $22.00 . Direct 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. Check (1) incremental cost to make RX5, 5740,000 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? Problem 23.4A Sell or process P2 Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufac- turing cost of $45 each. These jackets were damaged in the warehouse during storage. Management inves- tigated the matter and identified three alternatives for these jackets 1. Jackets can be sold as is to a secondhand clothing shop for S6 each. 2. Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $12 each. 3. Jackets can be reworked and turned into good jackets. However, with the damage, management esti- remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,000, but the jackets can then be sold for their regular price of $45 each. Check ncremental income for alternative 2. 528,000 Which alternative should Harold choose? Show analysis for each alternative. Ederron Company is able to produce two products. G and B. with the same machine in its factory. The following information is available. Problem 23-5A Analyzing sales mix strategies P3 Product G Product B $160 Selling price per un Variable costs per unit. Contribution margin per unit Machine store $120 40 $ 80 90 $70 it