Smith Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $10; direct labor, $25; variable overhead, $15; and applied fixed overhead, $30. Smith has received a quote of $60 from a potential supplier for this part. If Smith buys the part, 70 percent of the applied fixed overhead would continue. Smith Company would be better off by $160,000 to manufacture the part. $12,000 to make the part. $50,000 to manufacture the part. $40,000 to buy the part