Hermantic, Inc. can produce 100 units of a component part with the following costs: Direct Materials $30,000 Direct Labour 13,000 Variable Overhead 32,000 Fixed Overhead 22,000 If Hermantic, Inc. purchases the units externally for $80,000, by what amount will its total costs change? Fixed costs are not avoidable if they purchase externally. an increase of $5,000 an increase of $17,000 an increase of $80,000 a decrease of $22,000 If Hermantic, Inc. can purchase the component externally for $88,000 and only $8,000 of the fixed costs can be avoided, what is the correct "make-or-buy decision"? Buy and save $1,000. Make and save $1,000. Make and save $5,000 Buy and save $13,000