Cruise Company Produces a Part That Is Used in the Manufacture

Multiple Choice

Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6500 units, are as follows: Assuming Cruise Company can purchase 6500 units of the part from Suri Company for $14.00 each, and the facilities currently used to make the part could be rented out to another manufacturer for $25,000 a year, what should Cruise Company do?

A) Make the part and save $6.00 per unit.
B) Make the part and save $12.50 per unit.
C) Buy the part and save $1.00 per unit.
D) Buy the part and save $1.35 per unit.