PLEASE ANSWER ASAP

1) McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials Direct labor $86,000 121,000 58,000 Variable factory overhead Fixed factory overhead Total costs 138,000 $408,000 Of the fixed factory overhead costs, $55,000 is unavoidable. Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $21 per unit.

Assuming there is no other use for the facilities, Schmidt should

A) make the part, as this would save $14 per unit

B) make the part, as this would save $16 per unit

C) buy the part, as this would save $16 per unit

D) buy the part, as this would save the company $96,000