Eichholtz Company Uses 10,000 Units of a Part in Its

Multiple Choice

Eichholtz Company uses 10,000 units of a part in its production process.The costs to make a part are: direct material,$12;direct labor,$25;variable overhead,$13;and applied fixed overhead,$30.Eichholtz has received a quote of $55 from a potential supplier for this part.If Eichholtz buys the part,70 percent of the applied fixed overhead would continue.Eichholtz Company would be better off by

A) $50,000 to manufacture the part.
B) $150,000 to buy the part.
C) $40,000 to buy the part.
D) $160,000 to manufacture the part.