Megan Company must decide whether to make or buy some of its components for the appliances it produces. The costs of producing 165,000 electrical cords are as follows. Direct materials $90,000 Variable overhead $31,000 Direct labor $20,000 Fixed overhead $24,000 Instead of making the electrical cords themselves, the company can buy the cords at $0.90 per unit. If the company buys the cords, all variable costs and one-fourth of the fixed costs will be eliminated, and the released productive capacity can be used to make another product and generate an additional income of $4,000. Should Megan make or buy the electrical cords? O Buy, because the company will be $2,500 better off. O Buy, because the company will be $10,500 better off O Make, because the company will be $5,500 better off O Buy, because the company will be $6,500 better off. O Make, because the company will be $1,500 better off. Next- Not saved Submit Quie