Rubium micro devices currently manufactures a subassembly for its main product. the costs per unit are as follows: direct materials $54.00 direct labor 35.00 variable overhead 40.00 fixed overhead 34.00 total costs $163.00 crayola technologies inc. has contacted rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. should rubium make or buy the subassemblies? what is the difference between the two alternatives?
a. buy; savings = $7,000
b. make; savings = $203,000
c. buy; savings = $89,000
d. make; savings = $1,000