Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 60,000 units of RX5 follows.
|Total costs per unit||$||24.00|
Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 60,000 units of RX5 for $20.00 per unit.
Calculate the incremental costs of making