Wheeler Company Can Produce a Product That Incurs the Following

Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10; direct labor, $24, and overhead, $16. An outside supplier has offered to sell the product to Axle for $45. If Wheeler buys from the supplier, it will still incur 45% of its overhead cost.
Compute the net incremental cost or savings of buying.

A) $2.20 cost per unit.
B) $2.20 savings per unit.
C) $3.80 cost per unit.
D) $4.00 savings per unit.
E) $4.00 cost per unit.