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Marigold Corp. manufactures widgets. Embree Company has approached Marigold with a proposal to sell the company widgets at a price of $120000 for 100000 units.

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Marigold Corp. manufactures widgets. Embree Company has approached Marigold with a proposal to sell the company widgets at a price of $120000 for 100000 units. Marigold 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: Direct materials $ 46500 Direct labor 43500 Manufacturing overhead 60000 Total $150,000 The manufacturing overhead consists of $15000 of costs that will be eliminated if the components are no longer produced by Marigold. From Marigold's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? $30000 incremental cost $30000 incremental savings $15000 incremental cost 515000 incremental savings

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