Determine whether the below component part should be a "Make" or "Buy" decision with the expected cost savings for the chosen option.

Make

Buy

Expected annual quantity

$245,000$ units $245,000$ units

Variable cost per unit

$$7\mathrm{.}75$

$$9\mathrm{.}25$

Annual fixed costs.

$

$355,000$

"Buy" decision, with cost savings of $$10,000$

"Buy"decision, with cost savings of $$12,500$ "Make" decision, with cost savings of $$12,500$ "Make" decision, with cost savings of $$10,000$