A Company incurs the following costs to produce 10,000 units of the component A: * Direct materials Direct labor Variable overhead Fixed overhead $8.400 11.250 12.600 16,200 An outside supplier has offered to sell the Component A for $2.85 a unit If the company could avoid $3,000 of fixed overhead by accepting the offer, the total cost of buying the component will be $41,700 $31,500 $32,450 $35,450 A Company can make 100 units of a necessary component part with the following costs: * Direct Materials $120,000 Direct Labor 25,000 Variable Overhead 43,000 Fixed Overhead 30,000 If the company can purchase the component extemally for $190,000 and only $10,000 of the fixed costs can be avoided, what is the correct make-or-bay decision! Buy and save $5,000 Make and save $7,500 Buy and save $7,500 Buy and save $10,000