4. Wishy-Washy Corp is trying to decide if they want to make a component internally or buy it from an outside source. They will use 300,000 of these components in the upcoming year. The unit costs are as follows: Direct materials $22.50 Direct Labor $12.10 Variable manufacturing overhead $2.30 Fixed manufacturing overhead $4.00 Total Unit Costs 40.90 Direct labor is a variable cost. Of the fixed manufacturing overhead, 10% is not avoidable if the component were bought from an outside supplier; the remainder is avoidable. In addition, if the components are purchased, the facilities currently used could be leased to another company for $400,000 per year. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component? A) $41.83 B) $40.50 C) $37.30 D) $38.63