What Is The Correct Answer

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: $50 Direct materials Direct labor Variable overhead Fixed overhead Total 39 43 36 $168 Crayola Technologies Inc. has contacted Rubium with an offer to sell 8,000 of the subassemblies for $144 each. Rubium will eliminate $87,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? O A. Make; savings = $9,000 B. Make; savings = $279.000 c. Buy: savings = $33,000 OD. Buy: savings = $87,000