Aurora Tennis make tennis racquets. They may 2000 racquets per month. The business is considering purchasing the grip for tennis racquets from McEnroe Supplies for $2.50 per grip.

The current cost to make grips is as follows:

Component	Make costs
Materials	$1.00 per unit
Labour	$0.50 per unit
Variable overhead	$0.20 per unit
Fixed overhead	$500
Total cost per unit	$1.95

If the business chooses to buy the grip, the business will still need to pay the fixed overheat costs for the factory. However, the business will be able to store finished tennis racquets in this space which will save them $1 per unit in storage costs paid to another business.

Should Aurora Tennis MAKE or BUY the grips?

Group of answer choices

The business should MAKE the grip

The business should BUY the grip