Wow, I accidentally did a double post. I guess I might as well rant and ramble some more...
Guitar amplifier power has a lot of voo-doo and misunderstanding surrounding it. A lot of people think tube-watts is louder than solid-state-watts and weird stuff like that. The method for calculating an amps power is by replacing the speaker with a power resistor of the same ohms as the impedance of the speaker, hooking a scope probe across the load, and putting a smooth sinewave into the input jack. Then the volume knob is rolled up until the scope trace of the output sine wave starts to clip at the peaks and valleys. The vollume is rolled back just until the wave is a clean sine again. The ouput power is calculated at this point from the voltage across the load at this setting. This is the maximum CLEAN volume of the amp. The volume knob could be somewhere in the middle, but this is the max clean power the amp produces before going into distortion. Many guitar amps are designed around using a lot of distortion and clip early on the volume knob setting. Rolling the volume knob up increases the distortion and the volume. But (the big but) the amp was rated at its maximum clean sine output, which may be 5 out of 10 on the volume knob. This amp may seem louder than another amp rated at the same power that doesn't clip until the volume knob is at 8 out of 10. Once you drive these suckers into distortion all rules (and common sense) are off.
Blah, blah, blah, off topic sewage, sorry...
Anyway, the most limiting part of the "Marshall" MG10CD isn't its 10 watt power level, it is its 6-inch speaker(and really, the fact that it is a toy amplifier). I agree with Jeff about the speakers. You really are not going to get a great full sound out of a speaker smaller than 10 inches. Either for theremin or guitar.
Also most of the budget amps badged Marshall are geared towards clipping distortion and EQ'ed heavy on midrange, and not clean reproduction of the input signal. This may sound good to the 13-year-old with the Squire Bullet Stratocaster, but it may not be good for theremin.
The cheaper amps labeled Fender may be more geared toward clean tones, and often include reverb.
And as Jeff suggested, Keyboard amps may be a better solution overall. They are typically voiced for a wider frequency range, and they typically are excellent at producing a nice clean output without clipping.
Overall I don't think you are going to get a suitable amp for $40. This really is the bottom of the barrel kids practic amp range.
I would like to take this opportunity to be a guitar amp grouch and point out the the use of the word "Marshall" in quotations when discribing the MG10CD was done intentionally because real Marshal amps are not filled with integrated circuits and other evil little silicone contraptions. Real Marshall amps have two big honkin' transformers, a fistfull of 12AX7 and a pair (or quad) of EL84 GLOWING BOTTLES OF JOY!