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

Crispy Company manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows: $\begin{array} {ll}\text {Direct materials}&\$3\\\text {Directlabor}&5\\\text {Variable factory overhead}&4\\\text {Fixed factory overhead}&2\\\text {Total costs}&\$14\\\end{array}$ The fixed factory overhead costs are unavoidable.Assume that Crispy Company has been offered 5,000 units of the part from another producer for $15 each.The facilities currently used to make the part could be rented out to another manufacturer for $20,000 a year.Crispy Company should _____.

A) make the part to save $1 per unit
B) buy the part to save $3 per unit
C) buy the part to save $1 per unit
D) make the part to save $3 per unit

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