Glass Corp. currently manufactures Part Z23 that is a component of its main product. During the current year, the costs to produce 9,500 Parts Z23 are as follows:

Direct Materials	$ 56,000
Direct Labor	75,000
Variable Manufacturing Overhead	48,000
Fixed Manufacturing Overhead	58,000
Total Cost	$ 237,000

Glass has an opportunity to buy the 9,500 parts from another company for $30 each. If Glass buys the parts it can rent out the space currently used to make Part Z23 for $55,000 per year. All variable costs and 45% of the fixed costs are avoidable if the parts are purchased.

Based on this information, would Glass be financially better off making or buying the parts and by how much?

Multiple Choice

• $ 48,000 better to make

• $ 7,000 better to buy

• $ 79,900 better to make

• $ 24,900 better to make