The Northern Ring Company manufactures 2,000 telephones per year. The variable manufacturing costs per telephone are as follows: Direct materials $2 Direct labor B Variable manufacturing overhead 6 $16 Total Variable Cost per unit The company also has $12,000 total fixed costs. The Texas Ring Company has offered to sell Northern Ring Company 2,000 telephones for $15 per unit. If Northern Ring Company accepts the offer, $10,000 of fixed overhead will be eliminated. Northern Ring should: 0 Buy the telephones; the savings is $12,000 Buy the telephones: the savings is $24,000 Make the telephones; the savings is $12,000 Make the telephones; the savings is $2,000