ents Scott Corporation produces a part that is used in the production of one of its products. The per-unit costs associated with the annual production of 5,000 units of this part are as follows: Direct materials $ 2.00 eos Direct labor $ 3.00 Variable factory overhead $ 2.00 Fixed factory overhead Total costs $ 8.00 $15.00 nter ve Smith Company has offered to sell 5,000 units of the same part to Scott Corporation for $8 per unit. If Scott buys them from Smith Company. $2 fixed factory overhead cost per unit can be saved. In this condition, Scott should: O Buy the part, there by saving $1.00 per unit O Make the part, thereby saving $1.50 per unit. O Make the part, thereby saving $40,000 annually. O Buy the part, there by saving $1.00 per unit