Coronado Industries manufactures widgets. Embree Company has approached Coronado with a proposal to sell the company widgets at a price of $125000 for 100000 units. Coronado 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:

Direct materials	$ 46500
Direct labor	43500
Manufacturing overhead	60000
Total	$150,000

The manufacturing overhead consists of $17000 of costs that will be eliminated if the components are no longer produced by Coronado. From Coronados point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

$18000 incremental cost

$18000 incremental savings

$25000 incremental cost

$25000 incremental savings