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McMurphy Corporation produces a part that is used in the manufacture of one of its...

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Accounting

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McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 14,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $90,000 125,000 57,000 139,000 411,000 Of the fixed factory overhead costs $55,000 is avoidable. Conners Company has offered to sell 14 000 units of the same artto icM ation run t. Assuming there is no other use for the facilities, Schmidt should O A. buy the part, as this would save the company $238,000 ( B. make the part, as this would save $17 per unit O c. make the part, as this would save $15 per unit D. buy the part, as this would save $17 per unit

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