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Concord Corporation manufactures widgets. Bowden Company has approached Concord with a proposal to sell the company widgets at a price of $90200 for 100000 units.
Concord Corporation manufactures widgets. Bowden Company has approached Concord with a proposal to sell the company widgets at a price of $90200 for 100000 units. Concord is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced: The manufacturing overhead consists of $17600 of costs that will be eliminated if the components are no longer produced by Concord. From Concord's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? $6600 incremental cost $2200 incrementat savings $19800 incremental cost $19800 incremental savings
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