17. Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials I Direct Labor Variable Overhead $120,000 25,000 45,000 30,000 Fixed Overhead If Tex's Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying? a. $190,000 b. $200,000 c. $210,000 d. $220,000 Ans: C, LO: 3, Bloom: AN, Difficulty Medium, Min: 5, AACSB: Analytic, AICPA BB. Resource Management, AICPA FN: Decision Modeling, AICPA PC Problem Solving, IMA: Cost Management