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Vaughn Manufacturing manufactures widgets. Bowden Company has approached Vaughn with a proposal to sell the...

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Vaughn Manufacturing manufactures widgets. Bowden Company has approached Vaughn with a proposal to sell the company widgets at a price of $95120 for 100000 units. Vaughn 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: $ 35960 33640 Direct material Direct labor Manufacturing overhead 46400 Total $116000 The manufacturing overhead consists of $18560 of costs that will be eliminated if the components are no longer produced by Vaughn. From Vaughn's point of view, how much is the incremental cost or savings if the widgets are bought instead of made? $20880 incremental savings O $6960 incremental cost O $2320 incremental savings O $20880 incremental cost

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