Sunny Enterprises makes a component that is used in the assembly of radios, the company's main product. For the component, the variable costs per unit are $18. Razor Edge Products wants to sell Sunny 10,000 units of the component for $22 per unit. Sunny will be able to avoid $30,000 in fixed overhead costs if it chooses to purchase the component externally. What is the cost or benefit of purchasing the component from Razor Edge?

Select one:

a. $70,000 cost

b. $10,000 cost

c. $40,000 cost

d. $10,000 benefit