Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide $2,400$ units of product PQ$107$ for Valters for a price of $$150,000.$ If Quirch does not purchase these parts from the subcontractor it must produce them in$-$house with the following unit costs:

Cost per

Unit

Direct materials $$31$

Direct labor $,19$

Variable

overhead

$8$

In addition to the above costs, if Quirch produces part PQ$107,$ it would also have a retooling and design cost of $$9,800.$ The difference between the relevant costs of producing $2,400$ units of product PQ$107$ and buying the same number of units is $

$$1,000$ cheaper to make

$$10,200$ cheaper to make

$$14,200$ cheaper to purchase

the same the make and purchase

$$1,700$ cheaper to make