Krakowski Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

Multiple Choice

Krakowski Company manufactures a part for its production cycle.The costs per unit for 10,000 units of the part are as follows:
$\begin{array}{ll}&\text { Per Unit }\\\text { Direct materials } & \$ 20.00 \\\text { Direct labor } & 15.00 \\\text { Variable factory overhead } & 16.00 \\\text { Fixed factory overhead } & \underline{10.00} \\\text { Total costs } & \$ 61.00\end{array}$
The fixed factory overhead costs are unavoidable.Winters Company has offered to sell 10,000 units of the same part to Krakowski Company for $55 per unit.Assuming no other use for the facilities,Krakowski Company should ________.

A) make the part to save $40,000
B) make the part to save $60,000
C) buy the part from Winters Company to save $40,000
D) buy the part from Winters Company to save $60,000