3. Buddy Company manufactures a part for its production cycle. The costs per unit for 5,000 units of the part are as follows:

Per Unit

Direct materials$3.00

Direct labor5.00

Variable factory overhead4.00

Fixed factory overhead4.00

Total costs$16.00

The fixed factory overhead costs are avoidable. Spalding Company has offered to sell 5,000 units of the same part to Buddy Company for $15 per unit. Assuming no other use for the facilities, Buddy Company should ________.

A) make the part to save $5,000

B) make the part to save $15,000

C) buy the part from Spalding Company to save $5,000

D) buy the part from Spalding Company to save $15,000