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Corridor Co. can produce 130 units of a necessary component part with the following costs: Direct materials $23536 Fixed selling and admin 17585 Direct labour

Corridor Co. can produce 130 units of a necessary component part with the following costs:

Direct materials

$23536

Fixed selling and admin

17585

Direct labour

18322

Variable manufacturing overhead

37651

Fixed manufacturing overhead

10312

If Corridor purchases the component externally, $3879 of the fixed costs can be avoided. In addition, the warehouse could be rented out for $5768 per year. Below what external price for the 130 units would Corridor choose to buy instead of make?

Select one:

a. $77620

b. $106741

c. $89156

d. $83388

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