Max Company manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows:

Direct materials $3

Direct labor 5

Variable factory overhead 4

Fixed factory overhead 4

Total costs $16

The fixed factory overhead costs are unavoidable. Bellows Corporation has offered to sell 5,000 units of the same part to Max Company for $15 a unit.Assuming no other use for the facilities, Max Company should _____.

A. make the part to save $1 per unit

B. buy from Scalding Corp to save $1 per unit

C. buy from Scalding Corp to save $3 per unit

D. make the part to save $3 per unit