show how the answer is D

Revenue to op income 38) Lasso Corporation manufactur es a variety of appliances which all use Part B89. Currently, Lasso manufactures Part B89 itself. It has been producing 10,000 units of Part B89 annually. The annual costs of producing Part B89 at the level of 10,000 units include 38) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost $3.40 $8.30 $4.20 $3.00 $18.90 All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assume Lasso can purchase 10,000 units of the part from the Nadal Parts Company for $20.40 each, and the facilities currently used to make the part could be used to manufacture 10,000 units of another product that would have a $11 per unit contribution margin. If no additional fixed costs would be incurred, what should Lasso do? A) Continue to make the part to earn an extra $8.00 per unit contribution to profit. B) Make the new product and buy the part to earn an extra $9.50 per unit contribution to profit. ontinue to make the part to earn an extra $8.30 per unit contribution to profit. )yMake the new product and buy the part to earn an extra $6.50 per unit contribution to profit. 39) 9) Medoc Company provides the following information about its single product. h a35+ 53120 $58.120