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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 $135000 for 100000 units.
Marigold Corp. manufactures widgets. Embree Company has approached Marigold with a proposal to sell the company widgets at a price of $135000 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 Direct labor Manufacturing overhead Total $46500 43500 60000 $150,000 The manufacturing overhead consists of $34000 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? O $150,00 incremental savings. O $11000 incremental savings. $11000 incremental cost. O $15000 incremental cost.
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