Assume that Water Source Inc. has been purchasing a component necessary for its final product for $210 a unit. The factory is currently operating at 80% capacity, and no major increase in production is expected in the near future. The cost per unit of manufacturing the component internally is estimated as follows: Direct materials $ 68 Direct labor 84 Variable factory overhead 46 Fixed factory overhead 56 Total cost per unit $198 Calculate the cost savings from manufacturing the component internally. a. $80 b. $96 c. $58 d. $12