Sheridan Company manufactures widgets. Bowden Company has approached Sheridan with a proposal to sell the company widgets at a price of $63960 for 100000 units. Sheridan 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 material	$ 24180
Direct labor	22620
Manufacturing overhead	31200
Total	$78000

The manufacturing overhead consists of $12480 of costs that will be eliminated if the components are no longer produced by Sheridan. From Sheridans point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

a. $14040 incremental cost

b. $14040 incremental savings

c. $1560 incremental savings

d. $4680 incremental cost