The Southern Bell Company manufactures 2,000 telephones per year. The full manufacturing costs per telephone are as follows:

Direct materials	$ 2
Direct labor	8
Variable manufacturing overhead	6
Average fixed manufacturing overhead	6
Total	$22

The Illinois Bell Company has offered to sell Southern Bell Company 2,000 telephones for $15 per unit. If Southern Bell Company accepts the offer, $10,000 of fixed overhead will be eliminated. Southern Bell should:

Select one:

A. Make the telephones; the savings is $2,000

B. Buy the telephones; the savings is $24,000

C. Make the telephones; the savings is $12,000

D. Buy the telephones; the savings is $12,000