Rex Company uses 1,000 units of a component for its production process. For the volume of 1,000 units, the costs to make a unit of the component are:

Costs to make one component:
Direct Materials	14
Direct Labour	20
Variable overhead costs	16
Fixed costs	40

Rex has received a quote of 75 per unit from a potential supplier for 1,000 units of the component. If Rex buys 1,000 units of the component from the supplier, all costs will be eliminated apart from 80 percent of the fixed overhead costs that would continue.

Given the scenario above, what should Rex do?

A.	Buy the component and save 15,000
B.	Make the component and save 15,000
C.	Buy the component and save 17,000
D.	Make the component and save 17,000