Mad Mernas Halloween Emporium is planning for this years busiest time and is debating between buying or making this years limited edition witchs hat. Merna estimates that she will need 1,000 units. Her normal vendor charges $45.75 per hat including shipping. To make the hat, Merna will incur $15,000 in fixed costs and an additional $30.25 per hat in variable costs. Using the influence diagram below, create a spreadsheet model and determine 1) whether Merna should make or buy this years limited edition witchs hat and 2) how much she will save.

Multiple Choice

A. buy; $250

B. buy; $500

C. make; $250

D. make; $500