Potter Company manufactures a part for its production cycle. The annual costs per unit for 10,000 units for the part are as follows:

Per Unit

Direct materials. $20.00

Direct labor 15.00

Variable factory overhead. 16.00

Fixed factory overhead 10.00

Total costs $61.00

The fixed factory overhead costs are unavoidable. Paulson Company has offered to sell 10,000 units of the same part to Potter Company for $60 per unit. The facilities currently used to make the part could be rented out to another manufacturer for $100,000 per year. Potter company should

A) make the part to save $10,000

B) buy the part and rent the facilities to save $10,000

C) make the part to save $25,000

D) buy the part and rent the facilities to save $25,000