Sunland Company, Inc. can produce 100 units of a component part with the following costs:

Direct Materials	$ 25000
Direct Labor	9500
Variable Overhead	23000
Fixed Overhead	11000

If Sunland Company can purchase the component part externally for $ 62000 and only $ 4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Buy and save $ 4500

Make and save $ 500

Buy and save $ 2500

Make and save $ 2500