A commercial kitchen company is faced with a make-or-buy decision for a component used in its ice machines for restaurants. The variable costs for each unit of the component are $18 for direct materials, $10 for direct labour and $7 for variable overhead. Assume that fixed costs would remain the same under both the make and buy decisions. The company is offered a price of $35 per unit from an external supplier for the identical component. Which of the following statements is true? Select one: a. The company would save $7 per unit if it manufactured the component in-house. b. The company would be indiffetent to the make-or-buy decision. c. The company should buy the component from the external supplier, as this would save the company $10 per unit. d. The company should buy the component from the external supplier, as this would save the company $7 per unit