Greenwond Inc He Company Can Purchase the 1000 Units Externally for $117000

Multiple Choice

Greenwond Inc. can make 1000 units of a necessary component with the following costs: T $\begin{array}{lr}\text { Direct Materials } & \$ 72,000 \\\text { Direct Labor } & 18,000 \\\text { Variable Overhead } & 9,000 \\\text { Fixed Overhead } & ?\end{array}$ he company can purchase the 1000 units externally for $117000. The avoidable fixed costs are $6000 if the units are purchased externally. An analysis shows that at this external price the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?

A) $24000
B) $18000
C) $12000
D) Cannot be determined.