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Mallory Company manufactures wdgets Bowden Company has approached Mallory with a proposal to sell the company widgets at a price of $04,000 for 100,000 units
Mallory Company manufactures wdgets Bowden Company has approached Mallory with a proposal to sell the company widgets at a price of $04,000 for 100,000 units Mattory 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 Direct materia $ 31,000 Direct labor 29.000 Manufacturing overhead 40,000 Total $100,000 The manufacturing overhead consists of 16,000 of costs that will be eliminated at the components are no longer produced by Malory From Matory point of view, how much is the incremental cost or savings it the widgets are bought mead of nade? Select one O a 35,000 incremental cost Ob 510.000 incremental Savings O $2.000 incremental savings Od 518,000 incremental cont
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