The Rug Weaving Company manufactures an intermediate product identified as Y3. Variable manufacturing costs per unit of Y3 are as follows:

Direct materials	$2.00
Direct labor	$7.00
Variable manufacturing overhead	$5.00

Purple Company has offered to sell Rug Weaving 6,000 units of Y3 for $20 per unit. If Rug Weaving accepts the offer, $30,000 of fixed manufacturing overhead will be eliminated. Applying differential analysis to the situation, Rug Weaving should:

Select one:

a. Buy Y3; the savings is $60,000

b. Buy Y3; the savings is $6,000

c. Make Y3; the savings is $60,000

d. Make Y3; the savings is $6,000