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Crane Company can produce 100 units of a component part with the following costs: Direct Materials $18000 Direct Labor 9500 Variable Overhead 16000 Fixed

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Crane Company can produce 100 units of a component part with the following costs: Direct Materials $18000 Direct Labor 9500 Variable Overhead 16000 Fixed Overhead 11000 If Crane Company can purchase the component part externally for $50000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Make and save $500 O Buy and save $6500 O Buy and save $500 O Make and save $2500

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