Lyons Industries can produce 100 units of a necessary component part with the following costs: Direct Materials, $40,000; Direct Labor, $23,000; Variable Overhead, $42,000; Fixed Overhead, $30,000. If Lyons Industries purchase the components externally, $18,000 of the fixed costs can be avoided. At what external price would Justin be indifferent between buying versus making?

• A. $105,000.
• B. $112,000.
• C. $117,000.
• D. $123,000.
• E. $128,000.