Janice Foeld Company manufactures part Z for use in its production cycle. The costs per unit for 10,000 units of part Z are as follows.

Janice Foeld Company manufactures part Z for use in its production cycle. The costs per unit

for 10,000 units of part Z are as follows.

Baloney Company has offered to sell Janice Foeld 10,000 units of part Z for $30 per unit. If Janice Foeld accepts Baloney’s offer, the released facilities can be used to save $45,000 in relevant costs in the manufacture of part A. In addition, $5 per unit of the fixed overhead applied to part Z would be totally eliminated.

The total relevant costs to buy part Z are

a) $320,000.
b) $300,000.
c)  $290,000.
d)  $255,000