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 6500 units, are as follows:

Direct materials	$4.40
Direct labor	$4.30
Variable manufacturing overhead	$3.20
Fixed manufacturing overhead	$1.00
Total cost	$12.90
The fixed overhead costs are unavoidable.

Assuming Cruise Company can purchase 6500 units of the part from Suri Company for $14.20 each, and the facilities currently used to make the part could be rented out to another manufacturer for $29,000 a year, what should Cruise Company do? (Round intermediary and final calculations to the nearest cent.)

Selected Answer:	Make the part and save $6.50 per unit.
Answers:	Buy the part and save $1.30 per unit.
	Make the part and save $13.20 per unit.
	Make the part and save $6.50 per unit.
	Buy the part and save $2.16 per unit.