Cuyahoga Valley Bicycles Uses a Standard Part in the Manufacture

Cuyahoga Valley Bicycles uses a standard part in the manufacture of several of its bikes.The cost of producing 40,000 parts is $138,000,which includes fixed costs of $68,000 and variable costs of $70,000.The company can buy the part from an outside supplier for $3.50 per unit,and avoid 30% of the fixed costs.
If Cuyahoga Valley Bicycles makes the part,how much will its operating income be?

A) $90,400 less than if the company bought the part
B) $45,600 less than if the company bought the part
C) $47,600 greater than if the company bought the part
D) $49,600 greater than if the company bought the part