Crispy Company Manufactures a Part for Its Production Cycle

Multiple Choice

Crispy Company manufactures a part for its production cycle.The annual costs per unit for 5,000 units of the part are as follows: The fixed factory overhead costs are unavoidable.Another company has offered to sell 5,000 units of the same part to Crispy Company for $15 per unit.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) make the part to save $3 per unit
C) buy the part to save $1 per unit
D) buy the part to save $3 per unit