The blade division of dana company produces hardened steel blades. approximately one-third of the blade division's output is sold to the lawn products division of dana; the remainder is sold to outside customers. blade division's estimated sales and cost data for the year ending june 30th are as follows:

lawn products division outsiders sales $15,000 $40,000 variable costs 10,000 20,000 fixed costs 3,000 6,000 gross margin $2,000 $14,000 unit sales 10,000 20,000 the lawn products division has an opportunity to purchase on a continual basis 10,000 blades (of identical quality) from an outside supplier, at a cost of $1.25 per unit. assume that the blade division cannot sell any additional products to outside customers. assume, too, that there are no short-term avoidable fixed costs. based solely on short-term financial considerations, should dana allow its lawn products division to purchase the blades from the outside supplier, and why?

a yes because buying the blades would save rosey company 500
b no because making blades would save rowey 1,500
c yes because making the blades would save rowey 2,500
d no becasse the blades would save 2,500