14 15 n 16 You are the owner of 3.14, a pizza restaurant dedicated to feeding the local community one slice of pie at a time. Currently all pizza dough is made in house. As luck would have it, a pizza dough manufacturer has moved into a facility recently opened two doors down from your restaurant. You have a meeting scheduled with the owner to determine if the two businesses could work together to better serve the community. You provided the following information to one of your managers and asked them to determine at what purchase price you would be indifferent betwen making and buying the dough assuming next month the company anticipates needing 125 dough balls. Total cost to make 100 dough balls: Direct materials...$900 Direct labor... $375 Manufacturing overhead... $225 "Included in the manufacturing overhead is $40 of variable costs and $185 of fixed costs. If the pizza dough is purchased from the neighboring manufacturer, the direct material, direct labor, and variable manufacturing overhead costs will be completely elimiated. However, $125 of the fixed manufacturing overhead costs will remain. The manager sent you the following analysis: cost to make cost to buy $13.15(125) +$185 (purchase price)(125) + $60 At a purchase of $14.15 per dough ball, we would be indifferent between making and buying. Where did the manager go wrong in their analysis? OA. The manager solved for the wrong unknown. B. The manager failed to properly adjust for the remaining fixed manufacturing overhead. OC. The manager used the total variable manufacturing costs for the incorrect production volume. OD. The manager used the wrong production volume on the "buy" side of the equation. OE. The manager's calculation is correct.