3. McMurphv Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials $86,000 Direct labor 126,000 Variable factory overhead 58,000 Fixed factory overhead 138 000 Total costs $08,000 of the xed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $41 per unit. Assu ming there is no other use for the facilities, McMurphy should A} make the part, as this would save $16 per unit B] buy the part, as this would save $16 per unit If.) buy.r the part, as this would save the company $192,000 D) make the part, as this would save $14 per unit