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Bonita, Inc. can produce 1 0 0 units of a component part with the following costs:Direct Materials$ 2 9 9 0 0 Direct Labour 1

Bonita, Inc. can produce 100 units of a component part with the following costs:Direct Materials$29900Direct Labour13800Variable Overhead32900Fixed Overhead21800. If Bonita Inc. can purchase the component externally for $87000 and only $8500 of the fixed costs can be avoided, what is the correctmake-or-buy decision"? Buy and save $10400. Buy and save $2900. Make and save $1900. Make and save $2900.

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