Beta Company currently makes 350,000 units of product, Gamma along with its other products. Its production costs per unit are: direct materials, $5; direct labor, $4; unit- related overhead, $2. Facility-sustaining overhead is $700,000 per year. A company has made Beta an offer to supply all the units of Gamma it needs for $12 per unit. Should Beta Company accept the suppliers offer?

a. No, it will lose $1 per unit

b. Yes, it will save $1 per unit

c. Yes, it will save $3 per unit

d. No, it will lose $3 per unit

e. none of the above