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Harmony is currently producing 100 units of a necessary component part by incurring $60,000 in direct materials, $12,500 in direct Labor, $22,500 in variable overhead,

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Harmony is currently producing 100 units of a necessary component part by incurring $60,000 in direct materials, $12,500 in direct Labor, $22,500 in variable overhead, and $15,000 in fixed overhead. Harmony can purchase the component externally for $95,000 and $2,500 of fixed costs can be avoided. What should Harmony do, and why? Make and save \$2,500 Buy and save $2,500 Buy and save $7,500 Make and save $7,500

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