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ZalinskiCompany manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows: Per Unit Direct materials$25.00

ZalinskiCompany manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows:

Per Unit

Direct materials$25.00

Direct labor20.00

Variable factory overhead10.00

Fixed factory overhead15.00

Total costs$70.00

The fixed factory overhead costs are unavoidable.TokicCompany has offered to sell 10,000 units of the same part toZalinskiCompany for $60per unit. Assuming no other use for the facilities,ZalinskiCompany should ________.

A)makethe part to save $25,000

B)makethe part to save $50,000

C)buythe part fromTokicCompany to save $40,000

D)buythe part fromTokicCompany to save $60,000

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