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

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Accounting

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ABC Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: - Direct materials =$86,000 - Direct labor =$126,000 - Variable factory overhead =$58,000 - Fixed factory overhead =$138,000 - Total costs =$408,000 Of the fixed factory overhead costs, $55,000 is avoidable. XYZ Company has offered to sell 12,000 units of the same part to ABC Corporation for $41 per unit. Assuming there is no other use for the facilities, ABC Company should: make the part, as this would save $16 per unit buy the part, as this would save the company $192,000 buy the part, as this would save $16 per unit make the part, as this would save $14 per unit

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