Clinton Company Manufactures a Part for Its Production Cycle

Multiple Choice

Clinton Company manufactures a part for its production cycle.The costs per unit for 10,000 units of the part are as follows: The fixed factory overhead costs are unavoidable.Wilson Company has offered to sell 10,000 units of the same part to Clinton Company for $55 per unit.Assuming no other use for the facilities,Clinton Company should ________.

A) make the part to save $4 per unit
B) make the part to save $6 per unit
C) buy the part from Wilson Company to save $4 per unit
D) buy the part from Wilson Company to save $6 per unit