Begonia Uses Part 87A in the Production of Color Printers

Multiple Choice

Begonia uses part 87A in the production of color printers.Unit manufacturing costs for part 87A are:
Begonia uses 130,000 units of 87A per year.Benzyl Company has offered to sell Begonia 130,000 units of 87A per year for $18.Fixed overhead is unavoidable.

Should Begonia make or buy the part?

A) It should make the part because it will save $390,000 over buying it.
B) It should buy the part because it will save $390,000 over making it.
C) It should make the part because it will save $1,250,000 over buying it.
D) It should buy the part because it will save 1,250,000 over making it.
E) It should buy the part because it will save $340,000 over making it.