8.

View Policies Current Attempt in Progress Sheffield Company manufactures widgets. Ivanhoe Company has approached Sheffield with a proposal to sell the company widgets at a price of $59800 for 100,000 units. Sheffield is currently making these components in its own factory. The following costs are associated with this part of the process when 100.000 units are produced: Direct material $23700 Direct labour 23000 Manufacturing overhead 30000 $76700 Total The manufacturing overhead consists of $11200 of costs that will be eliminated if the components are no longer produced by Sheffield. From Sheffield's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? O $16900 incremental cost $1900 incremental savings O $1900 incremental cost O $16900 incremental savings Save for Later Attempts: 0 of 1 used Submit