Rally, Inc. produces the Mayhem Raider, an all-terrain utility vehicle. It currently purchases the Mayhem Raider's engine from a supplier but is considering making the engine in-house. The firm produces 100 engines per month.

Cost to buy: $5,000 per engine.

Cost to make: $300,000 in machinery and labor cost per month. $210,000 in other costs per month.

The Mayhem Raider is at the early stages of its product life cycle. Making the engines in-house should allow the firm's to have better long-term control over this product over and can lead to significant cost efficiencies in the future.

Which of the following is TRUE?

a. Both relevant cost analysis and strategic cost analysis suggest the firm should make.
	b. Relevant cost analysis suggests the firm should make, but strategic cost analysis suggests the firm should buy.
	c. Relevant cost analysis suggests the firm should buy, but strategic cost analysis suggests the firm should make.
	d. Both relevant cost analysis and strategic cost analysis suggest the firm should buy.