Wishnell Toys Can Make 5,000 Toy Robots with the Following

Multiple Choice

Wishnell Toys can make 5,000 toy robots with the following costs: $$\begin{array} { l c } \text { Direct Materials } & \$ 74,000 \\\text { Direct Labour } & 30,000 \\\text { Variable Overhead } & 23,000 \\\text { Fixed Overhead } & 15,000\end{array}$$ The company can purchase the 5,000 robots externally for $145,000.The avoidable fixed costs are $15,000 if the units are purchased externally.What is the cost savings if the company makes the robots?

A) $18,000
B) $15,000
C) $5,000
D) $3,000