Match Company Produces a Part That Is Used in the Manufacture

Multiple Choice

Match Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows: Of the fixed factory overhead costs,$72,000 are avoidable.Today Company has offered to sell 5,000 units of the same part to Match for $86.40 per unit.Assuming there is no other use for the facilities,Match Company should ________.

A) make the part to save $24,000
B) make the part to save $72,000
C) buy the part to save $24,000
D) buy the part to save $72,000