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Regis Company manufactures plugs at a cost of $40 per unit, which includes $6 of fixed overhead. Regis needs 30,000 of these plugs annually (as

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Regis Company manufactures plugs at a cost of $40 per unit, which includes $6 of fixed overhead. Regis needs 30,000 of these plugs annually (as part of a larger product it produces) Orlon Company has offered to sell these units to Regis at $39 per unit. If Regis decides to purchase the plugs $60,000 of the annual fixed overhead cost will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs I Regis Company purchases the plugs but does not rent the unused facility, the company would Multiple Choice O Love $3.00 per unit. 0 o Save $100 per unit 0 O Save 53.00 per unit 0 O Lome 56.00 per una 0 o Save $2.00 per unit 0

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