Miguel Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as follows:

Per Unit

Direct materials $3.00

Direct labor 5.00

Variable factory overhead 4.00

Fixed factory overhead 3.00

Total costs $15.00

The fixed factory overhead costs are unavoidable. Jimenez Company has offered to sell 5,000 units of the same part to Miguel Company for $15 per unit. The facilities currently used for the part could be used to make 5,000 units annually of a new product that would contribute $5 a unit to fixed expenses. No additional fixed costs would be incurred with the new product. Miguel Company should ________.

A) make the part to save $5,000

B) make the part to save $10,000

C) make the new product and buy the part to save $5,000

D) make the new product and buy the part to save $10,000