ABC company manufactures a particular computer component. Currently, the cost per unit is as follows: Direct Materials; P50, Direct Labor, P500; Variable Overhead, P250; Fixed Overhead, P400 XYZ company has obtained ABC with an offer to sell 10,000 units of the component for P1,100 per unit. If ABC accepts the proposal, P2,500,000 of the fixed overhead will be eliminated. Should ABC make or buy the component? Select the correct response: Make due to savings of P3,000,000 Buy due to savings of P1,000,000 Buy due to savings of P2,500,000 Make due to savings of P500,000