A company is considering the alternative of purchasing a part from a supplier rather than making it in-house.The relevant information is shown below:

In-house Manufacturing Annual Fixed Cost$80,000

Purchasing from a Supplier

Variable Cost per Unit$140$160

If the demand is 5,000 parts, the best decision is ________.

Group of answer choices

It is indifference between the two processes.

Neither process should the firm choose.

to purchase from a supplier

to manufacture in-house