Question: A company produces a single component with variable and fixed production costs of $5 and $3. An external supplier has offered to sell the component

A company produces a single component with variable and fixed production costs of $5 and $3. An external supplier has offered to sell the component to the company for $7 per unit. Assuming the company has no use for its idle capacity, what would be the effect of discontinuing production and sourcing the components from the supplier instead? O a. The company will save $1 per unit. O b. The company will save $2 per unit. O c. The company will lose $2 per unit. O d. The company will save $3 per unit.

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