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20-McGraw Inc. manufactures 12,000 units of a part used in its production to manufacture guitars. The annual production activities related to this part are as

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20-McGraw Inc. manufactures 12,000 units of a part used in its production to manufacture guitars. The annual production activities related to this part are as follows: Direct materials $24,000 Direct labor 60,000 Variable overhead 54,000 Fixed overhead 84,000 Hill Inc. has offered to sell 12,000 units of the same part to McGraw for $22 per unit. If McGraw were to accept the offer, some of the facilities presently used to manufacture the part could be rented to a third party at an annual rental of $18,000. Moreover, $4 per unit of the fixed overhead applied to the part would be totally eliminated. In the decision to make or buy the part, what is the relevant xed overhead for McGraw lnc.? $30,000 $54,000 $84,000 $48,000

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