URGENT!

Jenna makes a variety of bags and accessories in colorful prints. Jenna is looking at options to help her expand and become more profitable.

A local fabric shop has offered to make 1,000 of Jenna's most popular tote bags for a price of $45 each. Jenna currently makes the bags herself, with the following unit costs for 1,000 tote bags: $46

If Jenna buys the bags, she would be able to eliminate 25% of her fixed costs, but the rest would remain. Given this information, Jenna should:

a. buy the tote bags, because it would be less expensive by $1 per unit.

b. buy the tote bags, because it would be less expensive by $2 per unit.

c. make the tote bags, because it would be less expensive by $2 per unit.

d. make the tote bags, because it would be less expensive by $3 per unit.

Direct materials Direct labor Variable overhead Fixed overhead $5 $34 $3 $4 Total unit cost $46