Swifty Company manufactures widgets. Cullumber Company has approached Swifty with a proposal to sell the company widgets at a price of $60600 for 100,000 units. Swifty is currently making these components in its own factory. The following costs are associated with this part of the process when 100,000 units are produced:

Direct material	$23800
Direct labour	21900
Manufacturing overhead	29500
Total	$75200

The manufacturing overhead consists of $11300 of costs that will be eliminated if the components are no longer produced by Swifty. From Swiftys point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

$3600 incremental cost

$14600 incremental savings

$3600 incremental savings

$14600 incremental cost