Taylor Inc

Multiple Choice

Taylor Inc.manufactures 12,000 units of a part used in its production to manufacture guitars.The annual production activities related to this part are as follows: Best Guitars Inc.has offered to sell 12,000 units of the same part to Taylor for $22 per unit.If Taylor were to accept the offer,some of the facilities presently used to manufacture the part could be rented to a third party at an annual rental of $18,000.Moreover,$4 per unit of the fixed overhead applied to the part would be totally eliminated.
-In the decision to make or buy the part,what is the relevant fixed overhead for Taylor Inc.?

A) $30,000
B) $54,000
C) $84,000
D) $48,000