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S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special...

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S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special order for 2,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be a. $(46,000). b. $6,000. c. $(40,000). d. $10,000. Chapman Company manufactures widgets. Embree Company has approached Chapman with a proposal to sell the company widgets at a price of $125,000 for 100,000 units. Chapman is currently making these components in its own factory. The following costs are associated with this part of the process when 100,000 units are produced: 87. $ 46,500 43,500 60,000 $150,000 Direct materials Direct labor Manufacturing overhead Total The manufacturing overhead consists of $24,000 of costs that will be eliminated if the components are no longer produced by Chapman. From Chapman's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? a. $25,000 incremental savings b. $11,000 incremental cost c. $11,000 incremental savings d. $25,000 incremental cost

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