BLUE Company BLUE Company Needs 10,000 Units of a Certain Part to Part

Multiple Choice

BLUE Company
BLUE Company needs 10,000 units of a certain part to be used in production.If BLUE buys the part from RED Company instead of making it,BLUE could not use the present facilities for another manufacturing activity.Sixty percent (60%) of the fixed overhead applied will continue regardless of what decision is made.
The following quantitative information is available regarding the situation presented:

Refer to BLUE Company.In deciding whether to make or buy the part,BLUE' s total relevant cost to make the part is

A) $352,000.
B) $490,000.
C) $540,000.
D) $580,000.