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Current Attempt in Progress Bonita Industries manufactures widgets. Bowden Company has approached Bonita with a proposal to sell the company widgets at a price of
Current Attempt in Progress Bonita Industries manufactures widgets. Bowden Company has approached Bonita with a proposal to sell the company widgets at a price of $80360 for 100000 units. Bonita 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 $15680 of costs that will be eliminated if the components are no longer produced by Bonita. From Bonita's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? $17640 incremental cost $1960 incremental savings $17640 incremental savings $5880 incremental cost
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