A company manufactures chips used in the production of computers. The chips can be purchased for $50 each from an outside vendor. It costs the manufacturer $60 a chip to produce them, of which 25% is fixed overhead cost. What are the relevant costs for this decision? Based on y these costs, which option should the company choose?

A.

$50 and $45 Manufacture

B.

$50 and $45 Purchase

C.

$45 and $40 Purchase

D.

$45 and $40 Manufacture