The Abbott Company currently makes 10,000 units annually of a part it utilizes in the products it manufactures. Current costs for the part are as follows:

Direct materials $16.25

Direct labor 11.85

Variable manufacturing overhead 6.30

Fixed manufacturing overhead 10.20

Total $44.60

Other information: If the company decides to buy the part the empty warehouse space could be rented for $35,000 annually. In addition, half of the fixed manufacturing overhead costs would be avoided if the company decides to buy the part. The company has an offer from a manufacturer to produce the part for $42 per unit. If the company decides to accept the offer the net advantage or disadvantage to the companys annual net income would be

: A. An advantage of $10,000.

B. An advantage of $35,000.

C. A disadvantage of $25,000.

D. An advantage of $26,000