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ShoestringCompany manufactures a part for its production cycle. The costs per unit for10,000 units of the part are as follows: Per Unit Direct materials$4.00 Direct

ShoestringCompany manufactures a part for its production cycle. The costs per unit for10,000 units of the part are as follows:

Per Unit

Direct materials$4.00

Direct labor6.00

Variable factory overhead5.00

Fixed factory overhead4.00

Total costs$19.00

The fixed factory overhead costs are avoidable.DayCompany has offered to sell10,000 units of the same part toShoestringCompany for $18per unit. Assuming no other use for the facilities,ShoestringCompany should ________.

A)makethe part to save $5,000

B)makethe part to save $15,000

C)buythe part fromDayCompany to save $10,000

D)buythe part fromDayCompany to save $15,000

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