Landry's Inc. produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows:

Direct materials $ 90,000

Direct labor 130,000

Variable factory overhead 60,000

Fixed factory overhead 140,000

Total costs $420,000

Of the fixed factory overhead costs, $60,000 is avoidable.

Cooper Company has offered to sell 10,000 units of the same part to Landry's Inc for $36 per unit. Assuming there is no other use for the facilities, Landry's should ________.

a. buy the part, as this would save $6 per unit

b. buy the part, as this would save the company $60,000

c. make the part, as this would save $2 per unit

d. make the part, as this would save $6 per unit