K Catan Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,300 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable. $4.40 $4.10 $3.30 $1.00 $12.80 Assuming Catan Company can purchase 6,300 units of the part from X-Wing Company for $14.50 each, and the facilities currently used to make the part could be rented out to another manufacturer for $27,000 a year, what should Catan Company do? (Round intermediary and final calculations to the nearest cent.) O A. Buy the part and save $1.59 per unit. B. Buy the part and save $1.70 per unit. C. Make the part and save $6.40 per unit. D. Make the part and save $13.50 per unit.

Assuming Catan Company can putchase 6,300 units of the part from X - Wing Compary for $14.50 euch, and the tacilities currently used to make the part could bo rented out to another manufacturor for $27.000 a year, What should Catan Compary do? (Round insormediary and final calculations to the foarest cent) A. Buy the part and suve 51.59 per unit B. Buy the part and save $1.70 per unit. C. Make the part and save $0.40 por unit D. Make the part and save $13.50 per unit