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.

ALTERNATIVE FIXED COST VARIABLE COST

Buy $$200,000$ per year $$15$ per unit

Make $$50,000$ per year $$20$ per unit

For what range of output would you prefer to buy?

a$)20,001-30,000$ units per year

b$)10,001-20,000$ units per year

c$)0-10,000$ units per year

d$)30,001$ or more units per year