Use the Following to Answer the Questions Below

Multiple Choice

Use the following to answer the questions below.
You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows:

-Refer to the instruction above.At an annual requirement of 40,000 units,what does the company save per year by selecting the low-cost option?

A) $150,000
B) $300,000
C) $50,000
D) $40,000