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Vaughn Manufacturing manufactures widgets. Embree Company has approached Vaughn with a proposal to sell the company widgets at a total selling price of $127000 for
Vaughn Manufacturing manufactures widgets. Embree Company has approached Vaughn with a proposal to sell the company widgets at a total selling price of $127000 for 100000 units. Vaughn has the following cost associated the production of 100000 widgets: Manufacturing overhead includes $28000 of costs that will be eliminated if the widgets are no longer produced by Vaughn. What is the incremental cost or savings if the widgets are bought instead of made? $20500 incremental cost. $9500 incremental savings. $20500 incremental savings. $9500 incremental cost
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