Diamond Brands manufactures rice, wheat, and oat cereals. Sanders Company has approached Diamond Brands with a proposal to sell the company the rice cereals at a price of $22,000 for 20,000 pounds. The following costs are associated with production of 20,000 pounds of rice cereal: Direct material Direct labor Manufacturing overhead Total $13,000 5,000 7,000 $25,000 The manufacturing overhead consists of $5,000 of variable costs with the balance being allocated to fixed costs. What is the amount of avoidable costs if Diamond Brands buys rather than makes the rice cereal? $25,000 $23,000 $21,000 $20,000 $22,000