Youhave todecide whether to make or buy a component (part) that is an input for a product that you sell for $49.95.Your analysis shows that based upon the estimated volume of parts you will require, your variable costs per unit will be $.50 and given estimated volumes, your fixed (plant and equipment) cost per unit is $.48 per unit.A quick bid in the market suggests that you can currently buy the same part from two suppliers for $1.00 (another supplier bid $1.01).You should:

(Choose thebestanswer given the information above and explain your choice)

a)Make the part and capture the profits

b)Buy the part on the market

c)Make some parts and buy some parts to keep leverage over your suppliers

d)None of the above