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Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.00; direct labor, $24.00; and incremental overhead, $8.80. An outside supplier has offered to sell the product to Wheeler for $45.00. Compute the net incremental cost or savings of buying. Multiple Choice $4.00 savings per unit. $4.00 cost per unit. $2.20 cost per unit. $3.80 cost per unit. $2.20 savings per unit.

Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.00; direct labor, $24.00; and incremental overhead, $8.80. An outside supplier has offered to sell the product to Wheeler for $45.00. Compute the net incremental cost or savings of buying. Multiple Choice $4.00 savings per unit. $4.00 cost per unit. $2.20 cost per unit. $3.80 cost per unit. $2.20 savings per unit.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.00; direct labor, $24.00; and incremental overhead, $8.80. An outside supplier has offered to sell the product to Wheeler for $45.00. Compute the net incremental cost or savings of buying. Multiple Choice $4.00 savings per unit. $4.00 cost per unit. $2.20 cost per unit. $3.80 cost per unit. $2.20 savings per unit.
Transcribed Image Text:Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.00; direct labor, $24.00; and incremental overhead, $8.80. An outside supplier has offered to sell the product to Wheeler for $45.00. Compute the net incremental cost or savings of buying. Multiple Choice $4.00 savings per unit. $4.00 cost per unit. $2.20 cost per unit. $3.80 cost per unit. $2.20 savings per unit.
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