Sheffield Corp. manufactures widgets. Embree Company has approached Sheffield with a proposal to sell the company widgets at a price of $140000 for 100000 units. Sheffield 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 $16000 of costs that will be eliminated if the components are no longer produced by Sheffield. From Sheffields point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

$10000 incremental savings

$34000 incremental cost

$34000 incremental savings

$10000 incremental cost