Teresa, Inc., a manufacturing company, currently purchases the wool that it uses in manufacturing woolen gloves. The company is considering producing the wool. The analysis of whether to buy or to make is given below:

Buy		Make
Revenue	$1,000,000		$1,000,000
Material costs	(450,000)		(390,000)
Conversion costs	(250,000)		(300,000)
Value-stream profit	$300,000		$310,000

Assuming Teresa, Inc., is making its decision based only on the value-stream data given above, it should:

a.make the wool because the material costs incurred while making the wool is less than that of while buying the wool.

b.make the wool because the value-stream profit from making the wool is higher than that from buying the wool.

c.buy the wool because the value-stream revenue earned is same in both the cases.

d.buy the wool because the conversion cost while buying the wool is less than that of while making the wool.