11. Disk Computer Corporation currently manufactures the disk drives that it uses in its computers. The costs to produce 5,000 of these disk drives last year were as follows: Cost per drive Direct materials $ 8 Direct labor 2 Variable manufacturing overhead 5 Fixed manufacturing overhead 7 Total $ 22 Power Electronics has offered to provide Disk with all of its disk drive needs for $21 per drive. If Disk accepts this offer, Disk will be able to use the freed up space to generate an additional $40,000 of income each year to produce more of its computer keyboards. Only $3 per drive of the fixed manufacturing overhead cost above could be avoided. Based on this information, would Disk be financially better off making the drives or buying the drives and by how much? a. $10,000 better to buy b. $25,000 better to buy C. $10,000 better to make d. $25,000 better to make e. None of the above. The answer is