60 of 71 View Policies Current Attempt in Progress < Sunland's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $136000 Direct Labor 34000 Variable Overhead 46000 Fixed Overhead 34000 If Sunland's Manufacturing Company can purchase the component externally for $216000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $7000 O Make and save $12000 O Buy and save $12000 O Make and save $7000