Marigold Corp. can produce 100 units of a component part with the following costs:

Direct Materials	$20000
Direct Labor	4500
Variable Overhead	18000
Fixed Overhead	11000

If Marigold Corp. can purchase the component part externally for $47000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

a. Buy and save $2500

b. Make and save $500

c. Make and save $2500

d. Buy and save $4500