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

Direct materials	$ 20
Direct labor	$10
Manufacturing overhead	$8

Ithaca Tools has offered to sell Cornell Milling 10,000 units of Z1 for $31 per unit. If Cornell Milling accepts the offer, $30,000 of fixed manufacturing overhead will be eliminated. Applying differential analysis to the situation, Cornell Milling should

Group of answer choices

buy Z1: the saving is $100,000

make Z1: the saving is $100,000

buy Z1: the saving is $70,000

make Z1: the saving is $120,000