A tender has been received by a company to get a component from external supplier for $25$ SR per unit that is being made inside the company with the following cost information per unit

Direct material SR $5$

Direct labor SR $7$

Variable manufacturing overhead SR $7$

Fixed manufacturing overhead allocated SR $8$

Selling and administrative expenses SR $5$

Traced and avoidable Fixed manufacturing overhead SR $8$

What is the relevant cost and whether to insource or outsource.

a Relevant cost is $32$ and the decision is to outsource.

b Relevant cost is $10$ and the decision is to insource.

c Relevant cost is $27$ and the decision is to outsource.

d Relevant cost is $40$ and the decision is to outsource.