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Current Attempt in Progress Swifty Corporation manufactures widgets. Embree Company has approached Swifty with a proposal to sell the company widgets at a total selling
Current Attempt in Progress Swifty Corporation manufactures widgets. Embree Company has approached Swifty with a proposal to sell the company widgets at a total selling price of $130000 for 100000 units. Swifty has the following cost associated the production of 100000 widgets: Direct materials $ 46000 Direct labor 43000 Manufacturing 53000 overhead Total $142000 Manufacturing overhead includes $27000 of costs that will be eliminated if the widgets are no longer produced by Swifty. What is the incremental cost or savings if the widgets are bought instead of made? $14000 incremental savings. $12000 incremental cost. $12000 incremental savings. $14000 incremental cost. Oct 26 11:19 9 i O
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