W.T. Ginsburg Engine Company manufactures part ACT30107 used in several of its engine models. Monthly production costs for 1,090 units are as follows: Direct materials $43,000 Direct labor 9,500 Variable overhead costs 31,500 Fixed overhead costs 20,000 Total costs $104,000 It is estimated that 9% of the fixed overhead costs assigned to ACT30107 will no longer be incurred if the company purchases ACT30107 from the outside supplier. W.T Ginsburg Engine Company has the option of purchasing the part from an outside supplier at $95.75 per unit. BO O A $105,800 B. $85,800 C. $84,000 D. $104,000 Tracy's Custom Bags manufacturers and sells 14,100 customer designer bags per year, each requiring one yard of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require three months' lead time. Tracy desires to maintain a safety stock of sufficient material to meet one month's demand. What is Tracy's reorder point? O A. 1.175 B. 14,100 C. 3,525 D. 4,700