GlowShell can make 5,000 robots with the following costs:

Direct Materials $74,000

Direct Labour 30,000

Variable Overhead 23,000

Fixed Overhead 15,000

The company can purchase the 5,000 robots externally for $145,000. GlowShell can produce other products and generate an additional $15,000 income if the units are purchased externally. Should the company purchase externally?

Select one: a. no since the company cost $3,000 more to make in house b. yes since the company can save $12,000 cost c. no since the company cost $12,000 more to make in house d. yes, since the company can save $3000 cost