Answer :- Calculation of incremental cost or saving if the widgets are bought instead of made :-
Incremental Cost of making :- Direct Materials + Direct labor + manufacturing overhead
Incremental Cost of making :- $46,500 + $43,500 + $24,000
Incremental Cost of Making :- $114,000
Incremental saving or cost :- $125,000 - $114,000
Incremental Cost :- $11,000 incremental cost
therefore option B is correct. Thanks
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