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White Oak Company manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows: Direct materials$3 Direct

White Oak Company manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows:

Direct materials$3

Direct labor5

Variable factory overhead4

Fixed factory overhead4

Total costs$16

The fixed factory overhead costs are unavoidable.Spalding Corporation has offered to sell 5,000 units of the same part to White Oak Company for $15 a unit.Assuming no other use for the facilities, White Oak Company should _____.

Group of answer choices

buy from Scalding Corp to save $1 per unit

make the part to save $1 per unit

buy from Scalding Corp to save $3 per unit

make the part to save $3 per unit

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