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lota Company manufactures a component used in its main product. During the current year, the costs to produce 20,000 units of this component were $225,000,

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lota Company manufactures a component used in its main product. During the current year, the costs to produce 20,000 units of this component were $225,000, consisting of: Variable (per unit) Fixed Direct Materials $4.00 Direct Labor $2.00 Manufacturing Overhead $1.50 $75,000 $7.50 Another company has offered to manufacture the 20,000 components for lota for $12.00 each. If lota buys the components, all variable costs and 30% of the fixed costs are avoidable, and the company can also rent out the space currently used to manufacture the components for $40,000 per year. What is the financial advantage (disadvantage) to lota of buying the parts? O $ 2,500 O ($15,000) O $25,000 O ($27,500)

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