Talk Company manufactures 10,000 telephones per year. The full manufacturing costs per telephone are as follows: Direct materials $ 4 Direct labor 16 Variable manufacturing overhead 10 Average fixed manufacturing overhead 11 Total $41 The Telecom America has offered to sell Talk Company 10,000 telephones for $34 per unit. If Talk Company accepts the offer, $25,000 of fixed overhead will be eliminated. Decide whether or not Talk Company should make or buy the phones? Prove your case.