MiguelCompany 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 labor5.00

Variable factory overhead4.00

Fixed factory overhead3.00

Total costs$15.00

The fixed factory overhead costs are unavoidable.JimenezCompany has offered to sell 5,000 units of the same part toMiguelCompany for $15per 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.MiguelCompany should ________.

A)makethe part to save $5,000

B)makethe part to save $10,000

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

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