Business, 02.12.2019 20:31 megamorph

Sheridan company manufactures widgets. bowden company has approached sheridan with a proposal to sell the company widgets at a price of $68880 for 1 units. sheridan is currently making these components in its own factory. the following costs are associated with this part of the process when 1 units are produced: direct material $ 26040 direct labor 24360 manufacturing overhead 33600 total $84000 the manufacturing overhead consists of $13440 of costs that will be eliminated if the components are no longer produced by sheridan. from sheridan’s point of view, how much is the incremental cost or savings if the widgets are bought instead of made?
-$1680 incremental savings
-$15120 incremental savings
-$5040 incremental cost
-$15120 incremental cost

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Sheridan company manufactures widgets. bowden company has approached sheridan with a proposal to sel...

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