The Thresher Toy Company manufactures its Dreem Lites Kids' Pillow. Monthly production costs for 10,000 units are as follows:

Direct materials	$40,000
Direct labor	10,000
Variable overhead costs	30,000
Fixed overhead costs	20,000
Total costs	$100,000

It is estimated that 10% of the fixed overhead costs assigned to the Dreem Lites Pillow will no longer be incurred if the company outsources production of the Dreem Lites Pillow to an outside supplier. Thresher Toy has the option of purchasing the pillow from the outside supplier at $8.50 per unit.

If Thresher Toy accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total:

Group of answer choices

$100,000

$98,000

$82,000

$50,000