Facey makes boat parts, the cost is outlined below. A suppler can sell the parts to Facey for $350 per unit. Facey needs 500 parts

Direct materials

$ 70

Direct labour

80

Variable overhead

75

Fixed overhead (30% avoidable)

120

Should Facey make or buy the parts?

make and save $44,500

buy and save $44,500

make and save $172,500

buy and save $217,000