A B C D E Land O'Lakes makes its butter by processing cream into butter. An outside supplier has offered to process the cream into butter for Land O'Lakes, at $1.50 per unit. If the cream is processed by the outside supplier, $67,000 of fixed manufacturing overhead would be avoided, and the facilities used to process the cream could be rented to another company for $35,000 per year. Should Land O'Lakes make or buy the butter? Variable cost per unit to MAKE Cost per unit to BUY Fixed Overhead avoided Rental income $1.35 $1.50 $67,000 $35,000 1) \begin{tabular}{|r|} \hline MAKE \\ \hline \end{tabular} Difference between Make and Buy Options: 2) Should Land O'Lakes MAKE or BUY the butter? BUY *Assume this is the cost for processing cream into butter. You may ignore other product costs for the butter product line