=+2 Wizz Parts manufactures part no. 498 for use in its production line. The manufacturing cost per unit for 20000 units of part no. 498 is as follows:

Direct materials $6 Direct manufacturing labour 30 Variable manufacturing overhead 12 Fixed manufacturing overhead allocated 16 Total manufacturing cost per unit $64 Another company, Widget Parts, has offered to sell 20000 units of part no. 498 to Wizz Parts for $60 per unit. Wizz Parts will make the decision to buy the part from Widget Parts if there is an overall savings of at least $25000 for Wizz Parts. If Wizz Parts accepts Widget Parts’ offer, $9 per unit of the fixed overhead allocated would be eliminated. Furthermore, Wizz Parts has determined that the released facilities could be used to save relevant costs in the manufacture of part no. 575. For Wizz Parts to achieve an overall savings of $25000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of part no. 575 would be:

(a) $80000,

(b) $85000,

(c) $125000 or

(d) $140000. Show your calculations.