Crane Company, Inc. can produce 100 units of a component part with the following costs:

Direct Materials	$12000
Direct Labor	6000
Variable Overhead	16000
Fixed Overhead	11000

If Crane Company, Inc. can purchase the component part externally for $40000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

a. Make and save $1000

b. Buy and save $6000

c. Buy and save $1000

d. Make and save $2000