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Curly Inc. is considering whether to continue to make a component called X-31 or to buy it from an outside supplier. The company uses 15,000

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Curly Inc. is considering whether to continue to make a component called "X-31" or to buy it from an outside supplier. The company uses 15,000 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 30% is avoidable if the component were bought from the outside supplier. In addition, making one component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, this machine time would be freed up for use on other products of which the company has two choices as follows: Assume that there are huge demands for both Product A-1 and Product B-2 (i.e., all of the units of Product A-1 and Product B-2 produced can be sold). When deciding whether to make or buy the component, what is the maximum price the company would pay if it decides to buy? A. $ 18.77 B. $ 22.12 C. $ 24.02 D. $ 26.40 E. $ 29.12

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