Business, 05.05.2020 05:11 JASMINEM8347

A company currently makes a component used in production. The per unit costs incurred to make the component include: Direct materials: $5; Direct labor: $2; Overhead: $4; Total cost: $11. Twenty-five percent of the overhead costs are considered incremental. The company can purchase the component from another source for $10. The company should do which of the following? The company should make the components because incremental costs are $2 less than the purchase price. The company should buy the components to save $2 per unit. The company should buy the components to save $1 per unit. The company can be indifferent because incremental costs are $10 and the purchase price is $10.

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A company currently makes a component used in production. The per unit costs incurred to make the co...

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