Fir Company currently manufactures one of the components it uses in its main product. The costs to produce 5,000 of these components last year were as follows:

	Cost per drive
Direct materials	$	12
Direct labor		2
Variable manufacturing overhead		5
Fixed manufacturing overhead		7
Total	$	26

Fir has an opportunity to purchase the 5,000 components from an outside supplier for $29 each. This will allow Fir to rent the space currently used to make the components for $50,000 per year. If all of the variable costs and $3 per unit of the fixed costs are avoidable, would Fir be better off by making the components or buying them and by how much?

	a.	$15,000 better to buy
	b.	$30,000 better to buy
	c.	$10,000 better to buy
	d.	$30,000 better to make