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Current Attempt in Progress Sheridan Company manufactures widgets. Embree Company has approached Sheridan with a proposal to sell the company widgets at a price of
Current Attempt in Progress Sheridan Company manufactures widgets. Embree Company has approached Sheridan with a proposal to sell the company widgets at a price of $120000 for 100000 units. Sheridan 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: $ 46500 43500 Direct materials Direct labor Manufacturing overhead Total 60000 $150.000 The manufacturing overhead consists of $16000 of costs that will be eliminated if the components are no longer produced by Sheridan. From Sheridan's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? O $30000 incremental cost S14000 incremental cost $30000 incremental savings O S14000 incremental savings Save For Laser Attempts: 0 of 1 used Submit
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