You currently make a part on old equipment at a cost of $$50,000$ per year and a variable cost of $$20/$ unit. You have found an outside supplier who will make the part for $$15/$ unit if you will pay their annual fixed costs of $$200,000/$ year. The following table summarizes the details of this make versus buy decision. VARIABLE COST ALTERNATIVE FIXED COST $$200,000$ per year $$50,000$ per ye ar $$15$ per unit $$20$ per unit Buy Make Use Scenario $12\mathrm{.}1$ to answer the question. For what range of output would you prefer to make? $30,001$ to $35,000$ units per year $40,001$ or more units per year $0-30,000$ units per year $35,001-40,000$ units per yearYou currently make a part on old equipment at a cost of $$50,000$ per year and a variable cost of $$20/$ unit. You have found an

outside supplier who will make the part for $$15/$ unit if you will pay their annual fixed costs of $$200,000/$ year. The following table

summarizes the details of this make versus buy decision.

What does the company save for the year by selecting the low$-$cost option at an annual requirement of $40,000$ units?

$$300,000$

$$150,000$

$$50,000$

$$40,000$