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Rashids Manufacturing Company can make 100 units of a necessary component part with the following...

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Accounting

Rashids Manufacturing Company can make 100 units of a necessary component part with the following costs:

Direct Materials $120,000

Direct Labor 25,000

Variable Overhead 45,000

Fixed Overhead 30,000

If Rashids Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what buying cost for the 100 units is the company indifferent between making or buying?

$210,000

$200,000

$190,000

$220,000

i need step by step answer

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