Haver Company produces component RX5 for its sole product. The document provides the per unit costs to manufacture the required 54,000 units of RX5, which include $5 for direct materials, $9 for direct labor, and $3 for overhead that is 70% fixed. An outside supplier has offered to supply the units for $19 per unit. The solution calculates that the incremental cost per unit to make the component internally is $17 versus $19 per unit to buy it externally.