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XYZ Company has offered to sell 5000 units of product for $27 each to Company B. If ed Company B accepts the offer, they still

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XYZ Company has offered to sell 5000 units of product for $27 each to Company B. If ed Company B accepts the offer, they still have to pay the fixed factory overhead applied to the earlier product. 170.00 Costs per unit for 5000 units are: on Direct material: S4 Direct labour:12 Fixed factory overhead: $35.000 Which of the following statements is correct regarding the Company B consideration of making or buying? Select one: Select one o. Company B should accept the offer because they need no longer to focus on production related issues anymore. b. Company B should not accept the offer because total cost of production per unit is less than $27 c. Company B should not accept the offer because the total cost of production is less than total cost of purchase d. Company B should accept the offer because they cannot eliminate ST5,000 fixed cost e Company B should accept the offer because they don't have to spend time for production any more

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