The Cowboy's Company needs $20,000$ units of a certain part to use in its production cycle. Cowboys is considering the possibility of buying the part from Dolphins Company instead of making it$.$ Sixty percent of the fixed overhead will remain regardless of the decision made. Accounting records indicate the following data:

Cost to Cowboys to make the part:

Direct materials, $$4$

Direct labor, $$16$

Variable factory overhead, $$8$

Fixed factory overhead, $$10$

Cost to buy the part for Dolphins Company, $$36$

Which decision should Cowboys make & what is the total cost savings that would result?

Question $2$ options:

Make, $$80,000$

Buy, $$80,000$

Buy, $$120,000$

Make, $$120,000$