Puffin Company currently purchases a component part for $13 but is considering making the part internally. It is considering two alternatives for making it internally. Alternative A would increase fixed costs by $12,000 per month and incur variable costs of $9 per component part. Alternative B would increase fixed costs by $20,000 per month and incur variable costs of $7 per component part. Puffin Company is unsure of demand.

Assuming Puffin Company decides to make the part internally, which is the best alternative in terms of managing the risk of very low demand? Why?