Use This Scenario to Answer the Following Questions

Multiple Choice

Use this scenario to answer the following questions.
A company must decide if it will make or buy an item it needs. The company can make the item for $10 per unit, but must invest $15,000 in tooling to achieve that capability. Alex Rogo has quoted a total price of $12 per unit to supply the quantity required (assume their fixed costs are included in the quoted price) .
-Refer to the instruction above. What does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units) ?

A) $15,000
B) $60,000
C) $65,000
D) $5,000