Paxton Company can produce a component of its product that incurs the following costs per unit:...
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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $11.00, direct labor, $15.00, and incremental overhead $4.00. An outside supplier has offered to sell the product to Paxton for $39.00. Compute the net incremental cost or savings of buying the component. Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $11.00, direct labor, $15.00, and incremental overhead $4.00. An outside supplier has offered to sell the product to Paxton for $39.00. Compute the net incremental cost or savings of buying the component.
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