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Sunland Company manufactures widgets. Bowden Company has approached Sunland with a proposal to sell the company widgets at a price of $83640 for 100000 units.
Sunland Company manufactures widgets. Bowden Company has approached Sunland with a proposal to sell the company widgets at a price of $83640 for 100000 units. Sunland 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: The manufacturing overhead consists of $16320 of costs that will be eliminated if the components are no longer produced by 5 unland. From Sunland's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? $6120 incremental cost $2040 incremental savings $18360 incremental savings $18360 incremental cost
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