Concord, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows:

Direct materials and direct labor	$8
Variable overhead	5
Fixed overhead	8
Total	$21

Saran Company has contacted Concord with an offer to sell it 3100 of the wickets for $15 each. If Concord makes the wickets, variable costs are $13 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Concord make or buy the wickets?

Make; savings = $6200

Buy; savings = $3100

Buy; savings = $9300

Make; savings = $3100