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Chattanooga Company manufactures widgets. Dalton Company has approached Chattanooga with a proposal to sell the company widgets at a price of $82,000 for 100,000
Chattanooga Company manufactures widgets. Dalton Company has approached Chattanooga with a proposal to sell the company widgets at a price of $82,000 for 100,000 units. Chattanooga 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 at Chattanooga: Direct material Direct labor Manufacturing overhead Total $ 31,000 29,000 40,000 $100,000 The manufacturing overhead consists of $16,453 of costs that will be eliminated if the components are no longer produced by Chattanooga. From Chattanooga's point of view, by how much does the cost differ if the widgets are bought instead of made? Please enter a whole value. Do not enter a minus - sign or (brackets
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