The Nelson Company manufactures a unit called X.Variable manufacturing costs per unit of X are as follows:

Direct materials$1

Direct labor$10

Variable manufacturing overhead$5

The Nelson Company has offered to sell Nelson 10,000 units of X for $22 per unit.If Nelson accepts the offer, $50,000 of fixed manufacturing overhead will be eliminated.

Nelson should:

A.) buy the part; the savings is $50,000.

B.) make the part; the savings is $60,000.

C.) buy the part; the savings is $20,000.

D.) make the part; the savings is $10,000.