38. The Cascadia Widget Company is evaluating whether to make WIDGET A in-house or to purchase it from Farm Tec Inc., a local manufacturing company known to produce quality widgets. The following information is available: Cascadia Widget costs Direct materials $ 6 10 Direct labor Variable overhead Fixed overhead Total $ 3 $ 5 $ 7 $21 FarmTec will sell Cascadia the same product for $15. If Cascadia buys the product from Farm Tec, 75% of Cascadia's fixed overhead will continue to be incurred. What should Thompson do? a) Purchase the product from FarmTec because Cascadia will save $6 per widget purchased b) Continue to make the product because the cost from FarmTec is $15 c) Continue to make the product because the real cost if purchased from Farm TEC is equivalent to $14 per unit. d) Some other reason than a, b or c