20. Zalinski Company manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows:

Per Unit Direct materials $25.00 Direct labor 20.00 Variable factory overhead 10.00 Fixed factory overhead 15.00 Total costs $70.00

The fixed factory overhead costs are unavoidable. Tokic Company has offered to sell 10,000 units of the same part to Zalinski Company for $60 per unit. Assuming no other use for the facilities, Zalinski Company should ________. A) make the part to save $25,000 B) make the part to save $50,000 C) buy the part from Tokic Company to save $40,000 D) buy the part from Tokic Company to save $60,000

40.A budget prepared for different levels of activity is called a ________.

A) rolling budget B) operating budget C) flexible budget D) static budget