Sheffield Corp. manufactures widgets. Bowden Company has approached Sheffield with a proposal to sell the company widgets at a price of $99000 for 100000 units. The following costs are associated with Sheffields production process when 100000 units are produced:

Direct material	$ 34000
Direct labor	32000
Manufacturing overhead	50000
Total	$116000

Manufacturing overhead of $13500 of costs will be eliminated if the components are no longer produced by Sheffield. What is the incremental cost or savings to Sheffield if the widgets are bought instead of made?

$19500 incremental cost

$3500 incremental savings

$17000 incremental savings

$17000 incremental cost