The Cornell Milling Company manufactures an intermediate product identified as Z1. Variable manufacturing costs per unit of Z1 are as follows

Direct materials	$ 15
Direct labor	$5
Manufacturing overhead	$8

Ithaca Tools has offered to sell Cornell Milling 10,000 units of Z1 for $40 per unit. If Cornell Milling accepts the offer, $50,000 of fixed manufacturing overhead will be eliminated. Applying differential analysis to the situation, Cornell Milling should

Group of answer choices

make Z1: the saving is $70,000

make Z1: the saving is $120,000

buy Z1: the saving is $120,000

buy Z1: the saving is $70,000