Potter Company manufactures a part for its production cycle. The annual costs per unit for 10,000 units of the part are as follows: Per Unit Direct materials $20.00 Direct labor 15.00 Variable factory overhead 16.00 Fixed factory overhead 10.00 Total costs $61.00 The fixed factory overhead costs are unavoidable. Paulson Company has offered to sell 10,000 units of the same part to Potter Company for $60 per unit. The facilities currently used to make the part could be rented out to another manufacturer for $100,000 per year. Potter Company should ________.
A.
make the part to save $10,000
B.
make the part to save $25,000
C.
buy the part and rent the facilities to save $10,000
D.
buy the part and rent the facilities to save $25,000