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8) View Policies Current Attempt in Progress Oriole Company manufactures widgets. Sandhill Company has approached Oriote with a proposal to sell the company widgets at
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View Policies Current Attempt in Progress Oriole Company manufactures widgets. Sandhill Company has approached Oriote with a proposal to sell the company widgets at price of $60600 for 100,000 units. Oriole is currently making these components in its own factory. The following costs are noted with this part of the process when 100.000 units are produced Direct material $22100 22900 Direct labour Manufacturing overhead Total 29900 $74900 The manufacturing overhead consists of $12900 of costs that will be eliminated the components are no longer produced by Oride. From Orioles point of view, how much is the incremental cost or savings it the widgets are bought instead of made $14300 incremental savings $2700 incremental savings $14300 incremental cost O $2700 incremental cost Attempts: 0 of 1 used SA Step by Step Solution
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