Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6, 000 units, are as follows:

Direct materials $ 4.10. Direct labor $ 4.10. Variable manufacturing overhead $ 3.00. Fixed manufacturing overhead $ 1.40. Total cost $ 12.60. The fixed overhead costs are unavoidable.

Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $ 14.50 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do?

A.Make the part and save

$ 3.30

per unit.

B.Make the part and save

$ 5.70

per unit.

C.Make the part and save

$ 9.80$9.80

per unit.

D.Buy from Suri and save

$ 1.90$1.90

per unit.