Back Porch Company manufactures lawn chairs using an activity-based costing system to allocate all manufacturing conversion costs. The following information is provided for the month of June:

ActivityEstimated Indirect Activity CostsAllocation BaseEstimated Quantity of Allocation Base

Materials handling $12,000Number of parts12,000 parts

Assembling $16,800Number of parts12,000 parts

Packaging $4,500Number of lawn chairs1,500 lawn chairs

Each lawn chair consists of 8 parts; the total direct materials cost per lawn chair is $10.00.

If the cost to purchase the same lawn chair from a supplier is $35.00, what should Back Porch do to maximize profits? A) Since the cost to manufacture the lawn chair is also $32.20, the company would make the same profit whether it bought the lawn chair or manufactured it. B) Continue to manufacture the lawn chair. C) Purchase the lawn chair from the supplier. D) Close down the business.